67. You are planning to invest $5000 and the financial manager from the Westpac bank gives you the following investments to consider Investment 1: S1500 paid every year for 5 years, with the first payment to be received at the end of year 2 Investment 2: S600 paid semiannually for 5 years Investment 3: S100 paid at the end of first quarter and it will grow 1% quarterly forever a) What is the antal percentage rate of return of each investment? b) Calculate the effective annual rate of retum of each investment. c) Which investment should you choose? 68. Your rich aunt offers you the choice of 2 pay-outs today Choice 1: S1000 paid every year for 5 years, with the first payment to be received at the end of year 4 Choice 2: $3000 paid today If the discount rate and compounding rate are both 10%, identify the better offer. 20