Q4. (25 marks) a) Suppose you are committed to owning a $190,000 BMW. If you believe your mutual fund can achieve a 12% annual rate of return and you want to buy the car in nine years on the day you turn 30, how much must you invest today? b) You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $75,000 per year for the next two years, or you can have $64,000 per year for the next two years, along with a $20,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each month. If the interest rate is 10% compounded monthly, what is the PV for both the options? Which option do you prefer? c) You are looking at an investment that has an effective annual rate of 14%. a. What is the effective semiannual return? b. What is the effective quarterly return? c. What is the effective monthly return