Tina would like to receive $3,650 at the end each year for the next 6 years (first payment at year 1). Then she hopes to receive $4,600 per year (starting in year 7) for an additional 4 years. In total 10 payments. Assume an interest rate of 11.5%.

i. Find the present value of this cash flow stream. (6 marks)

ii. Find the future value of this

2. Mary wishes to accumulate $350,000 at the end of five years so that she may make a down payment on a piece of land which cost $2,250,000.

1. What is Mary equal end of year deposit be to accumulate $350,000 at 10.75% rate of interest? (6 marks)
2. If Mary receives the remaining portion of the cost of the land from a financial institution at a rate of interest of 20% to be repaid over 4 years at the end of each year.

1. Calculate the annual payment each year. (4 marks)

Prepare the amortization schedule for this loan cash flow stream.