Question 1 (14 marks) Suppose a government has to make the following payments to another government, in perpetuity. The first payment is made on 1 July 2020, and is equal to $1 million; All subsequent payments are made on the first of each month, but increasing at an inflation rate of 1% every 3 months. That is, the payments on 1 August and 1 September are also $1 million each, but the payments on 1 October, 1 November, and 1 December 2020 are $1.01 million each, the payment on 1 January 2021 is equal to $1,020,100, and so on. (a) Assuming an interest rate of 0.25% per annum, and including the value of the payment just made on 1 September 2079, use Excel to calculate the accumulated value of the above payments as at 1 September 2079. DO NOT hand in any excel workings. Answer: [2 marks] (6) Complete the 8 missing entries labelled '?' in the following table, using your cashflow projection from Excel.- just complete the table below. [8 marks) Time (month) Date 1 July 2020 1 August 2020 Payment $1,000,000 $1,000,000 1 June 2046 ? 1 August 2079 1 September 2079 ? Question 1 (14 marks) Suppose a government has to make the following payments to another government, in perpetuity. The first payment is made on 1 July 2020, and is equal to $1 million; All subsequent payments are made on the first of each month, but increasing at an inflation rate of 1% every 3 months. That is, the payments on 1 August and 1 September are also $1 million each, but the payments on 1 October, 1 November, and 1 December 2020 are $1.01 million each, the payment on 1 January 2021 is equal to $1,020,100, and so on. (a) Assuming an interest rate of 0.25% per annum, and including the value of the payment just made on 1 September 2079, use Excel to calculate the accumulated value of the above payments as at 1 September 2079. DO NOT hand in any excel workings. Answer: [2 marks] (6) Complete the 8 missing entries labelled '?' in the following table, using your cashflow projection from Excel.- just complete the table below. [8 marks) Time (month) Date 1 July 2020 1 August 2020 Payment $1,000,000 $1,000,000 1 June 2046 ? 1 August 2079 1 September 2079