You can choose among the following rent payment options: a) A lump sum payment of $100,000 today b) Ten annual payments of $12,000 each, the first payment occurring c) Monthly payments of $1,200 each for 120 months with the first 3. immediately payment occurring immediately Which rental payment scheme would you choose if the interest rate is 5% per year and why? (Show your calculations) 4. Arnold learned something very valuable as a teenager from his dad. He was told to inves $1,000 at 12% interest at age 20 and leave it alone until age 65. Arnold's dad knew tha one strategy that wealthy people use is to exercise self-discipline to never touch this long term plan. Arnold is very happy he applied his dad's advice. Approximately how lon will it take Arnold's savings to grow into $2,000? 5. Your child's orthodontist offers you two alternative payment plans. He is indifferent t which alternative you choose. The first plan requires a $4,000 immediate up-fror payment. The second plan requires you to make monthly payments of $137.41, payabl at the end of each month for 3 years. What nominal annual interest rate is built into th monthly payment plan