Question 1 (Total of 12 marks) An award winning author had recently completed a highly anticipated sequel to her successful novel. The author can sell the copyright of the novel to a publisher for $1,000,000 payable immediately. Alternatively, she can accept $30,000 each quarter in royalties for the next 10 years. (a) (7 marks) If the author can earn 6% per annum compounded quarterly, which offer is to her financial advantage? Show all calculations that support your answer. (b) (5 marks) A well-known producer in the film industry would like to purchase the rights to make a film adaptation to the novel. The rights for the film can be purchased for $500,000 when the film is released in 3 years. If the producer can earn 12% per year compounded monthly, what deposit is needed now in order to make this payment in 3 years' time