Question 3 (7 marks) You may use PV Factor Tables (a portion is provided on page #12) or financial calculator or Excel. Please show calculation details for partial marks. 1. The company issues a note to an entity to borrow cash for five years and will pay $500,000 to the entity at the end of the fifth year but not pay any interest. If the annual market interest rate 4%, please calculate the present value of the note (compounded annually and rounded to the nearest dollar). Amount at fifth year: $500,000 PV= 500,000*1/(1+0.04)^5 =0.821927 =410,964 Present Value is $410,964 2. Based on Part 1, if the company will pay $500,000 at the end of the fifth year and interest $25,000 at the end of each of the five years, please calculate the present value of the note (rounded to the nearest dollar). 3. Based on Part 1, if the company will pay $500,000 at the end of the fifth year and interest $25,000 at the end of each of the last four years (the second to fifth years), please calculate the present value of the note (rounded to the nearest dollar)