Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios. - Option 1: $12,000 (lump sum) now - Option 2: $20,000 (lump sum) seven years from now - Option 3: $4,000 annual payments for seven years Calculate the present value of each scenario using a 6% interest rate. Which scenario yields the highest value? Problem 2: Your client is planning their retirement. They would like to retire at age 59 and have enough money to withdraw $135,000 per year for the next 40 years (based on family history, they believe they will live to age 99.) They plan to invest their savings and expect to earn 6.5% per year. 1. How much money must they accumulate by retirement to make their plan work? 2. If they invested in a high-risk venture and were able to earn 14% interest, how much would they need to accumulate at retirensent