Sarah has saved $200,000 and is looking for investment opportunities that will pay her a monthly payment for the next ten years. She is considering two alternatives: 1. Surrey Bank offers a product called flex-annuity. First, the bank will pay an annuity with a present value of $100,000 for the first five years, with an APR of 6% compounded monthly. Second, they will take a deposit for the remaining $100,000 for five years. The value of the deposit at year 5 will equate to the present value of a second annuity that will last for five years. The deposit and the annuity are calculated using an APR of 12% compounded monthly. 2. Whiterock Investments offers a traditional annuity with a present value of $200,000 and an APR of 6% compounded quarterly. a) Calculate the monthly payments that Surrey Bank will give Sarah in both 5-year periods. b) Calculate the monthly payments that Whiterock Investments will give Sarah. c) If Sarah has an alternative investment that pays an APR of 10% compounded annually, and she decides to use this rate to discount cash flows, which investment opportunity ((1) or (2)) is the best for her? Sarah has saved $200,000 and is looking for investment opportunities that will pay her a monthly payment for the next ten years. She is considering two alternatives: 1. Surrey Bank offers a product called flex-annuity. First, the bank will pay an annuity with a present value of $100,000 for the first five years, with an APR of 6% compounded monthly. Second, they will take a deposit for the remaining $100,000 for five years. The value of the deposit at year 5 will equate to the present value of a second annuity that will last for five years. The deposit and the annuity are calculated using an APR of 12% compounded monthly. 2. Whiterock Investments offers a traditional annuity with a present value of $200,000 and an APR of 6% compounded quarterly. a) Calculate the monthly payments that Surrey Bank will give Sarah in both 5-year periods. b) Calculate the monthly payments that Whiterock Investments will give Sarah. c) If Sarah has an alternative investment that pays an APR of 10% compounded annually, and she decides to use this rate to discount cash flows, which investment opportunity ((1) or (2)) is the best for her