Question 1:

One of your relatives has died and states you as a beneficiary in his will.

You must choose between a trust fund that pays you $10,000 per month (starting in 60 months) for 20 years or a single amount of $1,000,000 in one year.

Your investment account earns 4% APR (compounded monthly).

Which alternative is worth more in present value terms and by how much?