1. Mrs. Smith is considering buy a financing product for her newborn baby. AMA insurance company offer Mrs. Smith a financing plan which involve a one-time payment of S150,000 in eighteen years but need buyers deposit $1,000 at the end of each month for first 5 years. Suppose deposit rate is 6 percent per year, answer the following question: Required: 1) Calculate the present value of all your payments. (5 marks) 2) Is the financing product worth buying? Please give your explanation. (5 marks) 3) Can you replicate the financing product by yourself? If you can, give your investment policy