Question $1.$ Assume that you borrow a grant of $$17,000$ with a compounded interest rate of $1\%$ per month

and the term is $4$ months. Please develop the cash flow diagrams for plan $1,$ plan $2,$ and plan $3$ as discussed in

Table $4-1$ in the Payment plans module.

Hint. You will turn in three cash flow diagrams and you can just draw them by hand, scan and paste them to

the Word file.

Question $2.$ You have the opportunity to invest $$10,000$ to an interest$-$bearing account. If you are expecting to

collect $$3,000$ per years for the next five years, what would be the annual compound interest rate? Please

develop a cash flow diagram and describe how you calculate the interest rate.

Hint. This is a plan $2,$ a fixed payment plan. Since the interest is annually compounded, your nper in the Excel

macro should be $5.$ The macro to use is $$rate$.$

Question $3.$ You have been offered the following investment opportunity: If you invest $$10,000$ today, you will

receive $$15,000$ back when it matures. If the interest rate is $1\mathrm{.}15\%$ compounded monthly, what would be the

length of your investment. Please construct a cash flow diagram and describe how you get the answer.

Hint. The macro to use is $$nper$.$ Do pay attention to the sign of pv and fv$,$ as discussed in slide $9.$