There are two new alternative investment opportunities offered by a bank to its customers. According to which a parent can enter into

one of the investments for a child at the child's birth. The first investment option will require the purchaser to make uneven cashflow

payments for the next $6$ years as given in the table below. The second investment option will require the same payment amount for the

next $6$ years. After the child's sixth birthday, no more payments are made. When the child reaches age $65,$ he or she receives $$A.$ Assume

an interest rate of $B\%$ compounded annually.

a$)$ For both investment options, calculate the present value of payments made by a parent.

b$)$ What is the value of each policy at the child's $65$ th birthday? Give your answer correct to the nearest whole number.

c$)$ which of the two options is a better investment opportunity?

A $,550,{000}^{\text{\$}}$

a$)$ Option $1$

PV

b$)$ Option $1$

Value

Option $2$

PV

Option $2$

Value

c$)$ Option to select "option $1"$ or

"option $2"$