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Question 1 (Total 30 marks) (a) Suppose you will receive a sum of $80,000 from your grandmother in 10 year times, how much it would
Question 1 (Total 30 marks) (a) Suppose you will receive a sum of $80,000 from your grandmother in 10 year times, how much it would be worth today with a discount rate of 6%? (10 marks) (b) You need to have a sum of $80,000 for joining a study tour in 5 years. How much you deposit in the bank at the end of each year at 5% interest to have such sum ready? (10 marks) (c) John family is buying a flat amounted to $5,000,000 in Kwun Tong and he will pay $2,000,000 as down payment and pay the remaining by applying a 30-year mortgage loan from a bank. The loan will be fully amortized over the next 30 years with annual interest rate of 3.5%. Interest is compounded monthly and all payments are due at the end of each month. Calculate the monthly mortgage payment? (10 marks)
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