Suppose that Jane can borrow and lend without restrictions at a rate of $10\%$ per year. Although

she has no cash in hand, Jane has come across an investment opportunity. If she decides to take

this opportunity, she must invest $$20,000$ today. The investment will return $$24,200$ in two years

from now. Assume that a discount rate of $10\%$ applies to all cash flows.

Answer questions a$)$ and b$)$ below.

a$)$ Jane has decided to take the investment opportunity. Determine the amount of

wealth that will be available to Jane in two years from now.

$*$For full credit, you must show the steps$/$calculation toward your results.

b$)$ Suppose that the investment return can be realized one year earlier. That is$,$

$$24,200$ will be returned to Jane in one year from today if she decides to invest $$20,000$ today.

She still can borrow and lend at a rate of $10\%.$ Determine the amount of wealth that will be

available to Jane today.

$*$For full credit, you must show the steps$/$calculation toward your results.