Question 3 (7 Marks) Jamie is thinking of retiring. His retirement plan will pay him either $1,500,000 immediately on retirement or $2,100,000 five years after the date of his retirement. (a) Which option should Jamie choose if the interest rate is 0% per year? (b) Which option should Jamie choose if the interest rate is 10% per year? Briefly explain your answers. Show all your calculations. Investment A offers to pay you $10,000 per year for 8 years, whereas Investment B offers to pay you $12,500 per year for 5 years. (a) Determine if Investment A or Investment B has the higher present value if the interest rate is 5%. (b) Determine if Investment A or Investment B has the higher present value if the interest rate is 15%. Show all your calculations. What is personal financial planning? Suggest ONE common financial goal for each of the following life situations: (a) a final year undergraduate student (b) a young couple with a new-born baby (c) an older couple (age 50+) with no dependent child (d) a single mother with a pre-school son Briefly explain your answers