Q5 A. (20 Marks) a) What is the difference between simple interest and compound interest? Please provide example with calculation. (4 Marks) b) i) You are offered an investment that will pay you $200 in one year, $400 the next year. $600 the year after, and $800 at the end of the following year. You can earn 12% on similar investments. How much is this investment worth today? (8 Marks) ii) You are looking at an investment that will pay $1200 in 5 years if you invest $1000 today. What is the implied rate of interest? (8 Marks)