As a winner of a breakfast cereal competition, you can choose one of the following prizes. Calculate the present value of each option below assuming the interest rate of 6% per annum.
ii) $40,000 paid one year from today and $70,000 paid seven years from today
iii) $20,000 paid at the end of each year for the next twelve years
iv) $5,000 next year and increasing thereafter by 3% per year forever