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please show step by step calculation ECTION A: COMPUISORY [20 marks ] Question 1 [CLO3] (a) Mary Jane (aged 55) has just started working with

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ECTION A: COMPUISORY [20 marks ] Question 1 [CLO3] (a) Mary Jane (aged 55) has just started working with the XYZ Company and is just trying to catch up on having money for retirement. XYZ offers her a pension plan with an annuity that is guaranteed to earn 10% interest compounded annually. She plans to work for 5 years before retiring and would then like to be able to draw an income of $100.000 per annum for 15 years. How much must be deposited per annum into her retirement fund to accomplish this? [6] (b) Suppose you were offered the opportunity to receive $2,500 beginning in one year and continuing forever. If you could eam 12% on your investments, how much should you pay for this perpetuity? [2] (c) Prepare a loan amortization schedule involving a $850,000 loan at 10% over 4. years. [6] (d) Your friend, a professional football player, has been approached by three different clubs, seeking to recruit him. Each club is offering him a three year contract, and the terms are set out below. He is uncertain which offer to accept, and has asked for your advice. Urven a discount rate is 14%; Which contract offers the greatest value? 6

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