We initially invest $60,000 for 3 years at simple interest annually at a nominal rate of 3.5% p.a. At the end of this initial investment, We subsequently invest the total accumulated amount (principal...

We initially invest $60,000 for 3 years at simple interest annually at a nominal rate of 3.5% p.a. At the end of this initial investment, We subsequently invest the total accumulated amount (principal plus interest earned) in a term deposit account for 3 years. This account pays compound interest monthly at a fixed nominal rate of 3.78% p.a. After 3 years invested in this term deposit account we close the account, for which the bank charges me a 0.01% service charge (on the total balance of the account). What is the amount I receive on closing the term deposit account?
(3 marks)
Question 2
To acquire a high-end advanced 3D printing machine for your company’s R&D department you have obtained quotes from two different suppliers. That gives you two different and mutually exclusive options to choose from. Each supplier is proposing their own equipment fully installed and commissioned onsite by them plus their own service and support over the operating service life of their machine.
Each machine has differences with regard to how it is operated and how it is maintained. Therefore each option produces different impacts such as the expected productivity that can be achieved, different maintenance costs, different installation costs, and different end-of-life costs. These differences which impact productivity, revenue contribution, and associated costs, have been already analysed for you by your manager and the net annual cashflows have been provided in the table below. Both options require an immediate net initial outlay of $500,000 and both machines have the same expected operating service life of 5 years. The net cashflows for each option include the cost savings expected over existing prototyping fabrication methods plus all costs specific to each option.