*Note for question 1: Can you please show the calculation for the questions based on the TVM variable/formula (FV, PV, n, or i)?

1. Your friend was supposed to repay a loan with a loan payment of $1,200 due in 6 months and another loan payment of $1,600 due in 3 years. However, your friend agrees to make two payments that replace the originally scheduled payments. The rst replacement payment of $1 is due in 2 years and the second replacement payment of $1,300 is due in 4 years. Suppose the interest is 5.5% p.a. compounded quarterly and the focal date is 2 years from now {Year 2], your friend asks for your help to determine the size of the second replacement payment, $1. To help your friend, you need to first answer the following question: a. b. lf the focal date is at year 2, which variable does payment 51,200 represent? {Choose from FV, PV, n, or U Show the calculation If the focal date is at year 2, which variable does payment $1,600 represent? {Choose from FV, PV, n, or I} Show the calculation Before you determine the size of the second replacement payment, SK, you need to figure out the equivalent value of the original single loan amount at the focal date. If the focal date is at year 2, what is the size of the equivalent single loan amount based on the original loan payments? {Express in at least 6 decimal places] Hint: Based on loan payments asked in a and b, you will solve for the answer here in c. Note: to receive the full mark, you will use all the decimal places when performing calculations, leave all decimal places in your final answer, and there is no need to include symbols such as dollar sign [5] or comma in your final answer. Show the calculation If the focal date is at year 2, which variable does payment 51,800 represent? {Choose from F'v', PV, n, or I} Show the calculation If you use the financial calculator TVM keys to solve for the focal date eguivalent values, which T'v'M key on the financial calculator should be set equal to zero? {choose from PMT, l/'r', PV, FV, or N] Show the calculation Your answer for 5X at the focal date is $ . [Express in 2 decimalsl Hint: Based on your answer in c and the replacement payment in d, you will need to determine SK. Note: to receive the full mark, you will use all the decimal places when performing calculations, round to 2 decimal places in your final answer, and there is no need to include other symbols such as $ and comma in your final answer. Show the calculation 2. The Central Bank pays 4.25% p.a. compounded monthly on certain types of deposits. a. What is the effective annual rate of interest? Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, express your final answer in percentage with 8 decimal places, and there is no need to include any symbols such as $6 in your nal answer. Show the calculation b. If interest is compounded daily instead of monthly, what nominal rate of interest compounded daily will maintain the same effective rate of interest you have found in the previous Question? Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, express your final answer in percentage with 3 decimal places, and there is no need to include any symbols such as '36 and comma in yourfinal answer. Show the calculation c. John made a deposit of $100 into a bank account at 4.25% pa. compounded monthly. How long {in years] will it take for $100 to accumulate to $123.63? Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, round your final answer to two decimal places, and there is no need to include unit in your final answer. Show the calculation d. Jer made a de osit of 100 into a bank account earnin interest for 42 months or 3.5 yearsl. The balance at the end of the 42 months [or 3.5 years! is $123.53. Determine the nominal interest rate compounded monthly that was charged by the bank. Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, express your final answer in percentage with four decimal places {or .0001%}, and there is no need to include unit in your final answer. Show the calculation