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"Canadian" Corporate Finance questions: There are 3 questions in total. Please make sure you include thorough explanations, include all formulas and...

Canadian Corporate Finance (3 questions)
Question #3 (Time Value of Money - annuity) Assume that it is now June 1, 2010 and you will need \$10,000 on June 1, 2014. Bank1 compounds interest at a rate of 8 percent annually. (a)How much must you deposit on June 1, 2011 to have a balance of \$10,000 on June 1, 2014? (b)If you want to make equal payments on each June 1 from 2011 through 2014 to reach your goal of \$10,000, how much must each of the payments be? (c)If your father were to offer either to make the payments calculated in part (b) or to give you a lump sum of \$7,500 on June 1, 2011, which would you choose? Why? (d)If you have only \$7,500 on June 1, 2011, what interest rate, compounded annually, would you have to earn to have the necessary \$10,000 on June 1, 2014? (e)Suppose you can deposit only \$1,862.90 each June 1 from 2011 through 2014, but you still need \$10,000 on June 1, 2014. What interest rate, with annual compounding, must you earn to achieve your goal? (f)To help you reach your \$10,000 goal, your mother offers to give you \$4,000 on June 1, 2011. You will find part-time work and make 6 additional payments of equal amounts each 6 months thereafter. If all this money is deposited with your favourite bank which pays 8 percent, compounded semi-annually, how large must each of the 6 payments be?

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