Problem Set 3 :TVM 1. Suppose that you had paid $ 300,000 for an investment that pays the following caslh flows. What will be your internal rate of return? i. $ 45,000 ii. $38,000 iii. $52,000 iv. $ 320,000 2. Your housekeeping Manager has $ 22,500 on deposit today in his retirement account which offers 4.2% per annum nominal interest compounded monthly. He will also deposit $ 175 per month in another account paying 5% nominal return per year compounded monthly. If he retires in 26 years, how much will he receive in total from this account? 3. Sarah has an opportunity to buy a lake-side caf from a friend for $ 600,000. She will finance it with a mortgage calling for annual payments over 20 years at 8.5% annually compounded interest. How much will her annual payment be? 4. You just borrowed $ 85,000 at 8.25% per annum over 30 years to build a seaside gazebo for your hotel. What are your monthly payments going to be