Question 1 (4 points): A set of cash flows starts putting $30,000 in year 1 and increases this by 5% for the next 9 years. 1) Determine the equivalent annual worth when an interest rate is 2%. 2) Determine the equivalent annual worth when an interest rate is 5%. Question 2 (4 points): The chemical plant is planning to purchase the $230K equipment which can help Increase production at year 7. The plant currently has $25K for this project in the investment account. The investment plan is to deposit $20K at year 1 and 2 and grows by $1K each year from year 3 for the next 5 years. Determine the future worth with interest rate of 2%. Does the chemical plant have enough funds to purchase the equipment at year 7? Question 3 (4 points): Calculate the effective interest rate per quarter if nominal rate is 16%, compounded monthly? Question 4 (4 points): Followings are four options offered by a bank to borrow money for purchasing a car. Provide the order of the preference on the four options and justify your answer. 1. 3.00%, compounded monthly 2. 3.50% per year, compounded quarterly 3. Effective 3.50%, compounded monthly 4. 3.50% Question 5 (4 points): With an interest rate of 2.492%, compounded quarterly, if you deposit $2,500 every semi-annual, how much will you have in 2.5 years