You are asked to select one of the following prizes:

A one time payment of $100,000 today,

Payments of $7462 at the start of each year for 25 years,

Daily payments of $17 forever beginning tomorrow.

a) If the given rate of interest is 5.96% per year compounded quarterly, what is the annually compounded rate of interest that is equivalent to 5.96% compounded quarterly?

b) If the given rate of interest is 5.96% per year compounded quarterly, what is the value of the second option in terms of dollars today?

c) If the given rate of interest is 5.96% per year compounded quarterly, what is the daily compounded rate of interest that is equivalent to 5.96% compounded quarterly?

d) If the given rate of interest is 5.96% per year compounded quarterly, what is the value of the third option in terms of dollars today?

e) If the given rate of interest is 5.96% per year compounded quarterly, what is the value, in terms of dollars today, of the prize you should select?