3) Compute and compare which of these banks offers the highest deposit interest rates for a 3-year CD: Bank A-5% compounded annually. Bank B-4 93% compounded monthly: Bank C-4.9% compounded continuously? 4) A business you are planning to acquire is expected to generate the following year- end net cash flows: Year 1-$6 million, Year 2-$7 million, Year 3-Year 5 $8 million each year. Also at the end of Year 5, you plan to sell it for $80 million Assuming your cost of capital is 10%, how much is this business worth to you today? 5) You are earning $15 per hour today. In 5 years you are hoping to earn $20 per hour How fast should your pay raise be (in annual growth %) in order to attain that goal? 6) You borrowed $1,000 from a loan shark who demands that you pay him back in 2 months with $1,200. How much is he charging you in annualized interest rate (ie. EAR)? 7) You have an investment account that has returned 8% in 1.5 years" the account continues to grow at that rate, what would be its total return in 20 years? 8) You bought a Ming Dynasty vase years ago and now its appraised value has doubled. Your appraiser said this property has grown an average of about 5% in value every year during the past 30 years. How many years (rounded to whole year) have elapsed between your purchase date and today? 9) An executive, in negotiating his employment contract, requests that he either be offered a cash sign-on bonus a year from now of $250,000 or a 3-year payout bonus starting a year from now (and continue for 2 more years) of $92,000 each payment If the company has a cost of funds equal to 12%, which demand makes more financial sense to the company? Show value for both cases 10)A bank advertises that if you open an account of $100, it will grow to $115 after one year, compounded quarterly. What is the bank offering in terms of the nominal interest rate (APR)