a. Discuss the concept of time value of money. You discussion should include the at least five reasons for time preference of money. (Discussion 5 marks; reasons 10 marks = 15 marks)

b. If Emilia deposits N$10,000 in a bank deposit account giving her an interest rate of 8% per year compounded quarter yearly, how much will be in her account at the end of four years. (8 marks)

c. You are planning to buy a computer game for your young brother as present at his 7th birthday which is end of next year. The quadbike will cost N$3,000 next year. The interest rate is 8% per year and is compounded once per year. How much money should you set aside now in order to pay for the purchase? (8 marks)