Question 1

You have $1 000 000 available to invest for a period of 7 years. After investigating the local bank, you have complied the following table for comparison.

Bank	Interest Rate	Compounding
CIBC	8%	Quarterly
RBC	10%	Semi-Annually
SCOTIA	11%	Annually
TCI BANKING	12%	Monthly

Students are required to:

1. Calculate using excel; and (10 marks)

2. Calculate using the Present Value Tables. (20 marks)

Question 2

Mrs. Harvey is expecting to receive a yearly disbursement from his insurance company of $2 500 for three years. She also is expecting the following returns from her investment in Carnival Corporation Limited:

Years	Amounts
1	$1 000
2	$950
3	$1 175

She is curious to know how much these inflows would be worth today. Compute for Mrs. Harvey what the value of her future disbursements and cash flows will be today. The rate of return is 7.75% compounded semi-annually.

Students are required to:

Calculate using excel; (10 marks)