Q1. Answer the following questions: (a) If a loan is borrowed at 4% annual interest, and paid back in one lump sum 3 years from now with a payment of $3,618.12. How much was borrowed today? (b) This question helps illustrate how beneficial it is to start saving for retirement as soon as possible: Let's say you wanted to start saving for retirement today. You found an investment that gives you 7% interest per year, and have $1,000 to deposit. How much would you be able to withdraw 40 years from now? (c) If you take out a loan for $22,300 to a buy a car, how much would you have to pay annually over 10 years to repay the loan if the interest rate is 8.5% compounded annually (assuming equal payments)? (d) How much would you need to set aside every year in a savings account for the next 20 years to save a total of $100,000 by the end of that 20 years if your savings accumulate interest at a rate of 5%? (e) Suppose that a company is shutting down one of its factories. Starting a year from now, it's slowly ramping down its production by 10% yearly starting from 10,000 units. If each item it produces contributes a revenue of $25, how much would the present worth of the company's expected revenue be from now until it shuts down completely (assume interest is at 10%)? (f) This question helps highlight the difference between simple and compound interest over a long period of time: What would be the interest earned under a simple interest scheme for $10,500 invested in a savings account after 40 years assuming it gained interest at 5% annually. How much would the interest earned be if a compound interest scheme was used instead (with the same interest rate)?