Show all workings. 1) A loan of $100 is to be repaid in three equal payments. If the annual interest rate is 7% compounded bi-annually (twice a year), how much is each payment? State the given values. (6 marks) 2) The average age of engineering technology students at graduation is a little over 23 years. This means that the working career of most engineering technologists is almost exactly 500 months. How much would you need to save each month to become a millionaire by the end of your working career? Assume a 15% interest rate, compounded monthly. State the given values. (6 marks) 3) Three alternatives are being considered for improving an operation on the assembly line along with the 'do nothing alternative. Equipment costs vary, as do the annual benefits of each in comparison to the present situation. Each of Plans A, B, and C has a 10-year life & a scrap value equal to 10% of its original cost. If interest is 8%, which plan, if any, should be adopted? (Hint: work out your costs EUAC and benefits EUAB to find EUAW for each) (16 marks) Installed cost of equipment Material & labour savings per year Annual operating expenses End-of-useful-life salvage value Plan A Plan B Planc $15,000 $25,000 $33,000 14,000 9,000 14,000 8,000 6,000 6,000 1,500 2,500 3,300 4) A firm purchased some equipment at a very favorable price of $30,000. The equipment resulted in an annual net saving of $1000 per year during the eight years it was used. At the end of eight years, the equipment was sold for $40,000 Assuming interest is 8%, did the equipment purchase prove to be desirable? (8 marks) (Hint: Calculate the benefits & the costs of the equipment that was purchased, EUAB, EUAC to find EUAW)