Problem 4: You graduated from Memorial University with an engineering degree two years ago and have been working as a project manager for an engineering firm ever since. You are now considering climbing the corporate ladder and reach an upper management position within the next three to four years. You believe that getting an MBA will help you achieve your professional goal. Doing your MBA will cost you about $40,000 for the two-year executive program. You estimate that you will need to pay $15,000 in one year and $25,000 two years from now when you finish the program. Your employer has offered you to make the two payments for your MBA program if you make quarterly deposits in the corporate savings account that pays 7.8% annual interest compounded quarterly. You will need to make nine payments in total, one payment now and one payment every quarter until graduation. How much should be your equal nine payments. NOTE: Show all your workings, i.e., assumptions, rationale, formulae, cash flow diagrams, etc., to get full credit. Solution 4