Homework: Economics 1 - Problem Mr. Don is the director of A-Design Inc. federally incorporated company in Canada that specializes in the design and manufacture of armrests for the wheelchair industry. wheelchair industry. A-Design has invested $100,000 in a production machine with a 10-year life span and invested $10,000 in its 10,000 in its bank account. In order to improve the sales and profits, Mr. Don planned to offer two purchase options to his purchase options to his company's customers: Option 1: A $250 deposit up front and an annual fee of 500 for the next 5 years Option 2: A deposit of $1,300 up front and an annual fee of $300 for of $300 for the next 3 years

Assignment: Economics 1 - Questions 1. Assuming an interest rate of 5% per year for 5 years on the amount invested in the bank, how much would A-Design have in his bank account at the end of the 5 years? in the bank, how much would A-Design have in his bank account at the end of the first the first year? (1 point) 2. Assuming an interest rate of 5% per year for 5 years on the amount invested in the bank, calculate the the bank, calculate the simple and compound interest earned by A-Design at the end of the fifth year. the end of the fifth year. (2 points) 3. Assuming an interest rate of 5% per year compounded every 6 months for 5 years on the amount invested in the bank, how much would A-Design have in its bank account at the end of bank account at the end of the fifth year? (1 point) 4. Assuming an interest rate of 5% per year compounded monthly for 5 years on the amount invested in the bank, how much would A-Design have in his bank account at the end of the fifth year? bank account at the end of the fifth year? (1 point)