You've been interested in entrepreneurship as long as you can remember. As a kid you started micro-businesses all the time. After your first "Lemonade Stand", you started mowing neighbourhood lawns in the summer and shovelling driveways and walks in the winter. Once you were old enough to drive, you started shuttling seniors to doctor's appointments for tips and tutored accounting students after school. From your 12 birthday on, you've averaged a net profit after expenses of $500 per month. At the end of each month, you've deposited that money into a self-managed brokerage account, which returned 10% annually. You've continued running your businesses and depositing your monthly profits throughout your time here at ACC. When you graduate from ACC's School of Business on June 30, 2023, you're going to purchase your own business using your investment savings as a down payment. Part A Instructions n 1. State your birthdate and then state the birthdate when you reached twelve years of age. Using the month of your twelfth birthday and the graduation date from above, calculate the number of months you have been saving and the amount of down payment you'll have available to put toward your new business. Use the nearest whole month when rounding. 2. Search the internet for a business for sale in Canada worth at least $500,000. 3. Find the Bank of Canada's website and locate the Prime Rate for the week/day you are working on your project. Due to the high- risk involved, commercial financing quotes are prepared on a case-by-case basis. For the purposes of this project, you will assume that your quoted lending rate is Prime + 4.5% percent nominal annual interest, and your bank will finance the purchase using your down payment (from your previous $500 per month savings). Be sure to clearly identify the rate used in your calculations. 4. Use your prime +4.5% rate, compounded semi-annually, and a 25-year term to calculate a monthly payment, and then construct an amortization schedule for the 1 year (1" 12 payments). 5. If you wanted to pay off the entire loan in one lump sum payment after 20, 15, or 10 years, what would you owe to pay off the existing balance? 6. Using the same rate but assume it's compounded quarterly, change the term to 20 years, recalculate the monthly payment and create a second amortization chart for the 1" year. 7. If you wanted to pay off the entire loan after 10 years, what would you owe? 8. Research and experiment as required. Create a complete amortization table for part 4 (25 years, compounded semi- annually), and part 6 (20 years, compounded quarterly), using Excel. You may use a template if you want. Part B Instructions Instead of buying your own business, you decide to use the down payment savings to chase your other passion, surfing. You're going to move to the surfing capital of Canada, Tofino B.C., and surf every day that you can. In order to do this, you must live within a tight budget. You've figured out, through scrimping and saving, you can live on $4,000 Canadian at the beginning of each month. 1. Assume you deposit your down payment into a savings account that earns 7.5% compounded semi-annually. 2. Now that your money has been deposited into the savings account, how many months will your money last if you withdraw $4,000 each month? Assume you have no other additional income deposited into the same account. Why would you have other income, you're surfing every day. 3. You may submit your work in another clearly marked tab of your original Excel spreadsheet from Part A, but all information within the spreadsheet must be clearly identified and organized. 4. You may also submit your work in a Word document, but all information and work must be clearly identified. If you use the BAII plus calculator, you must show your work. This includes the calculator buttons used. Otherwise, formulas and calculation details are required.