1. Amy borrows a loan today and promi ises to make the following repayments to pay off the loan: $1,200 in 1 year, $850 in 2 years, $950 in 3 years and $1,500 in 4 years. The bank charges interest at 3.5% pa. compounding half-yearly. How much does Amy borrow today? (Correct to the nearest cent.) (2 marks) 2 2 7 2. Laura makes the following deposits into her bank account: $1,200 in 1 year, $2,600 in 3 years and $1,700 in 4 years. How muchle in her bank account at the end of year 5 if the interest rate is 2.5% p.a. effective. (Correct to the nearest cent) (2 marks) 3. Kareena wants to make an investment and she needs your advice choosing the best project Project A is expected to deliver returns at 9.8% p.a. compounding daily and Project B is expected to deliver returns at 9.85% pa. compounding weekly. Which project should Kareena choose? Show your workings without calculating PV or FV. (2 marks)