1. What will be the PV if I deposit $ 600 at the end of each quarter for the next 20 years if the interest rate 5% compounded semi-annually? 2. Sam would like to buy the promissory note and she has the following two options. The followings are the two promissory notes that she can purchase. If she would like to spend MAXIMUM at this moment, which promissory note should she purchase? i. 80 days after issued of 180-day promissory note for $ 12,000. The money market rate for this type of promissory note is 8 %. ii. 110 days before expiry of 180-day promissory note for $ 14,000. The money market rate for this type of promissory note is 4%. 3. Equal payment Sam would like to borrow $ 36,000. Money is worth 5% compounded semi-annually and she was given the following two options from different bank. Determine the size of the equal payments from the two different banks i. RBC offered two equal payments in 4 months and 9 months. ii. NSCU offered three equal payments in 2 months, in 11 months and 1.3 years 4. Sam a first-time home buyer is looking to buy a house. They liked a house on Prince Rupert Avenue. Sam put an offer of $ 260,000 and it got accepted pending bank approval. She went to RBC and NSCU. Each offered the following terms (25 marks) i. RBC requires 5% minimum down payment. Sam would also have to pay mortgage insurance to CMHC for $ 15,600. The rest would be financed at 4% compounded quarterly for 25 years. If the payment is due at the start of each month, how much monthly payment would Sam make? ii. NSCU requires 20% down payment. The rest would be financed at 4.2% compounded semi-annually for 20 years. If the payment is due at the end of each month, how much monthly payment would Sam make? Sam would like to buy Rupert Fishing Company, an existing business which has been in Prince Rupert for 25 years. Sam must buy a fishing boat to run the business. Boat cost $ 14 million and it will take 2 year to get it constructed and delivered to Prince Rupert. Vendor has agreed Sam to pay 50% of the boat cost at the end of year 1 and 50% on delivery. Expected useful life of the boat is 11 years from the date of delivery. Price of salmon per lb is $ 21 on first fishing year and then is expected to grow at a rate of 3 % per year. Sam expects to catch around 90,000 lbs of salmon first fishing year and the catch is expected to increase by 4 % every year. Fish boat will need to replace for $ 80,000 on 5th fishing year. What do you suggest Sam? should he purchase the business? Assume interest rate is 12% per year