Someone is going to give you money because you are awesome!They have given you three choices:

Option A - They will give you $205 today.

Option B - They will give you $225 in 2 years.

Option C - They will give you $75 today, $50 in 1 year, and $90 in 2 years.

1. The risk-free rate is 4%.Which option should you choose (for the highestpresent value)?
2. The 1 year annual risk-free rate is 4% and the 2 year annual risk-free rate is 6%.Which option should you choose (for the highestpresent value)?

Please show formulas