SECTION A: ANSWER ALL QUESTIONS. 1) Alexandra has just won a lottery of RM61 million. The organizer of the lottery has given her 3 options to choose. Option 1-receive a lump sum of RM61 million today Option 2-receive 10 end-of-year payments of RM9.5 million Option 3-receive 30 end-of-year payments of RM5.5 million Which option should she choose if she earns 7% annually? b. What is the best option if she expects to cam 8% annually? s. Which option is recommended if she was to earn 9% annually? 2) Shmasul is planning to buy an apartment. He earns a monthly income of RM40,000 and plans to put aside 25% of his salary. Aaron has set aside ready cash for the 20% down payment on his apartment and the remaining balance will borrow from the bank. The bank charges the nominal rate of 10% for a 20-year mortgage loan. What is the price of the most expensive apartment that Aaron can buy? 3) En. Amwar wants to buy a house within 3 years, and is currently saving for down payment. He plans to save RM5,000 at the end of the first year, and anticipate that the annual savings will increase by 10% annually thereafter. The expected annual return is 7%. How much will En. Amwar have for down payment at the end of year 3? 4) Set up an amortization schedule for a RM25,000 loan to be repaid in equal instalments at the end of each of the next 3 years. Interest rate is 10% compounded annually. What percentage of the payment represent interest and what percentage represents principal for each of the 3 years.