1. a) James wishes to purchase a Porsche for $2,000,000 in 10 years and decides to deposit a fixed amount in an investment account at the end of each year of the coming 10 years. How much should he deposit every year so that he will have enough money in his investment account to purchase the car at the end of 10 years? Assume that his investment account earns an average yearly return of 17% over the next 10 years. (9 marks)

2. b) How would the answer change if James is going to make quarterly deposits? Assume that everything else is the same as in (a). (5 marks)

3. c) Redo (a) and (b) by assuming that the deposits are to be made at the beginning of the period (i.e. beginning of the year for part (a) and beginning of the quarter for part (b)). (6 marks)