1. What is the difference between a series of payments and an annuity? What arethe two specific characteristics of a series of payments that make them anannuity? . Ten years

ago you inherited €2,500,000 and decided to invest it in an exchangetraded fund (ETF). You have just checked your balance and discovered it isnow worth €3,970,000. What rate of return did you earn on your investment? You are considering two lottery payment options: Option A pays €500,000 todayand Option B pays €850,000 at the end of twelve years. Assume you can earn9 per cent on your savings. Which option will you choose if you base yourdecision on present values? Which option will you choose if you base yourdecision on future values? Explain why your answers are either the same ordifferent. You receive a credit card application from Almad Plc offering an introductoryrate of 3.50 per cent per year, compounded monthly for the first six months,increasing thereafter to 21 per cent per year compounded monthly. Assumingyou transfer the £10,500 balance from your existing credit card and make nosubsequent payments, how much interest will you owe at the end of the firstyear? Why might a borrower select anwhich would be cheaper?interest-only loan instead of an amortized loan,