Scenario Alex, a talented amateur baker, won first place in a reality-show baking competition and was awarded $100,000. He decided to invest most of his prize money (keeping some aside to enjoy himself) in a short-term GIC earning 1.85% compounded monthly, with plans to use the investment income to open his own bakery in Calgary. After 5 years, his GIC is worth $104,199.33.

1. How much of his prize money did Alex initially invest?

2. What was the accumulated interest over the 5-year period? 3.

How long did it take for Alexs initial investment to earn back the money he kept aside (i.e., to reach $100,000)? Round your answer up to the next month.

4. What nominal rate, compounded semi-annually, would have resulted in the same maturity value as the original GIC? 5. If Alex had invested in the stock market following his financial advisors recommended portfolio, his initial investment would have accumulated to $117,386.92 in 5 years. What was the effective interest rate of the stock portfolio?

6. Calculate how much interest would have accumulated if the original GICs interest rate was compounded quarterly instead of monthly. How much less would Alex have made if this was the case?

7. Ten years after Alex starts up his bakery, Holy Cannoli, hes made enough profit that he wants to reinvest some of it to open a second location. His goal is to have $120,000 saved up in 5 years, and he plans to make investments as follows: I. $25,000 in 1 year II. $40,000 in 2 years, 3 months III. A third investment in 3 years, 6 months Alex will also require a withdrawal of $10,000 at the end of 3 years for personal reasons. Suppose all his investments earn 2.95% compounded monthly. Determine the size of Alexs third investment. Include a detailed timeline.

8. Alex decides to take out a loan to open up a third location, and he borrows $150,000 from a reputable bank to do so. How much will he have to repay after 5 years if he is charged 2% compounded quarterly for the first 2 years and 3% compounded monthly for the next three years? Include a detailed timeline.

Marking Criteria BMAT Calculations

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please solve answers step by step as its weightage is 15%