a/ A piece of machinery depreciates in value by 5% a year. Determine its value in 3 years time if its current value is $50 000.

b/ Simon decides to buy a new sofa which is available at each of three stores at the same fixed price. He decides to borrow the money using each stores credit facility. Store A has an effective rate of interest of 12.6%. Store B charges interest at a rate of 10.5% compounded continuously. Store C charges interest at a rate of 11.5% compounded quarterly

c/Determine the monthly repayments needed to repay a $125 000 loan which is paid back over 20 years when the interest rate is 7% compounded annually. Round your answer to 2 decimal places.