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Laxmi Silwal inherited a property from her grandparents few decades ago and since then the value of the property has been gradually increasing. She in planning to sell the property so she can buy a new house by the bay area. She is considering several offers for the property and several saving plans. (i) The first offer is a single lump sum amount of $600,000 to be received on 1st January 2017. Laxmi will deposit the amount in a savings account in Commonwealth bank earning 4.25% per annum. If she accepts this offer, how much money will she have in her account at the end of 2020? (Round your answer to whole number) (3 mark) (ii) The second offer is a single lump sum amount of $600,000 to be received on 1st January 2017. Laxmi will deposit the amount in a savings account in Commonwealth bank earning 4% per annum, compounding half yearly. If she accepts this offer, how much money will she have in her account at the end of 2020? (Round your answer to whole number) (3 mark) (iii) The third offer is a series of four annual payments on 1st January 2017, 2018, 2019 and 2020 of $350,000, $120,000, $100,000 and $50,000. Laxmi will deposit all payments received in a savings account in Commonwealth bank earning 4% per annum. If she accepts this offer how much will she have saved at the end of 2020? Round your answer to whole number) (3 mark) BBAC602 Group Assignment Page 2 (iv) The fourth offer is a series of four equal annual payments of $140,000 on 1st January 2017, 2018, 2019 and 2020. Laxmi will deposit all payments received in a savings account in Commonwealth bank earning 4% per annum. If she accepts this offer how much will she have saved at the end of 2020? (Round your answer to whole number) (3 mark) (v) If Laxmi accepts the second offer for 4 years, what is the effective annual rate of return? (Round your answer to two decimal places) (2 marks) (vi) Which option will Laxmi choose, and why? (1 mark)