1. Suppose you are considering the Investments: One pays 10% Simple interest per annum and one that pays 100% ! Compound Interest per annum, rohich would you choose and vohy? 7. I down Nightd has just purchased a machine at a lost of #smillion. The effective life of the machine is estimated to be Syears. A Sinking fund is to be created for replacing the machine by a new model at the end of its life time when its scrap realizes nil. Machine price is assumed to merease in line with inflation rate. The annual luflahon rate is assumed to be 14%. every year Calculate what ammut should be set aside. of profits for the sinking fund if it accumulates at 24% interest rate per annum. Show the Sinking fund out Schedule