Question 1: An NBA player is to receive a $1,000,000 signing bonus today and $2,000,000 at the end of one year, two years, and three years from now. Assuming r=10% and ignoring tax considerations, would he be better off receiving $6,000,000 today

Question 2: 1.Future values and annuities:

a.The cost of a new automobile is $10,000. If the interest rate is 5%, how much would you have to set aside now to provide this sum in five years?

b.You have to pay $12,000 a year in school fees at the end of each of the next six years. If the interest rate is 8%, how much do you need to set aside today to cover these bills?

c.You have invested $60,476 at 8%. After paying the above school fees, how much would remain at the end of the six years?