2. a. Your significant other has offered you a choice of $100,000 right now or $20,000 a year for 7 years to go away. Using 8%, which should you take?
b. How much must you pay each year on a $300,000 mortgage that has a 20 year maturity and a 5% interest rate?
3. Which investment would you make? X pays you $5000 a year for 8 years while Y pays you $4000 a year for 12 years. Use a 6% interest rate.