Question 1 1. You plan to borrow $35,000 at an 8% semiannual interest rate. It is a 3 year loan that requires 6 payments to fully amortize. a) Calculate the amount of semiannual payment you would be making every period? b) Set-up an amortization schedule. II. As a store manager of a furniture store, you want to offer credit to your customers. The customers will pay interest on the outstanding balance to the store manager as a compensation for buying more time to make payment on the purchase. The interest on outstanding balances will be paid daily. However, you need to finance working capital so that the daily operations are not halted. Therefore, you must borrow funds from your bank at a quoted interest rate of 7%, daily compounding. To offset your overhead, you want to charge your customers the effective rate of interest that is 2.5% more than the bank is charging you. What nominal rate should you charge your customers? III. Your uncle has $550,000 invested at 5.5%, and he now wants to retire. He wants to withdraw $45,000 at the beginning of each year, beginning immediately. He also wants to have $50,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $45,000 withdrawals and still have $50,000 left in the end? (First make a time-line indicating inflows and outflows and then calculate for the asked output). Hint: your uncle has $550,000 therefore, it's an inflow