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.

12 Month 13 14 15 16 17 18 19 20 Plan 2 21 Month 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 2 3 4 $17,000 $ $17,170 $ $17,342 $ $17,515 $ $ (2) (3) pay fixed amount monthly Owed BOM Interest $17,000 $12,813.22 $8,584.58 3 4 $4,313.64 1 Owed 80M 2 Interest 170.00 171.70 173.42 175.15 690.27 170.00 128.13 85.85 43.14 D Owed EoM $17,170 $17,342 $17,515 $17,690 (4) Owed EOM $17,170.00 $12,941.35 $8,670.42 $4,356.78 Principal Payment 0 0 0 $17,000 $ Y (5) Principal $4,186.78 $4,228.65 $4,270.93 $4,313.64 17,690.27 (6) Payment $4,356.78 $4,356.78 $4,356.78 $4,356.78 PV= int rate nper FV= amt $17,000 1% 0 ($4,356.78) 4