a) How much money will you accumulate by the end of year 10 if you deposit $10,000 each year for the next ten years in a savings account that earns 5% per year? [05 Marks] FVn=PMT[i(1+i)n1] FVn=FV of annuity at the end of nth period. PMT = annuity payment deposited or received at the end of each period i= interest rate per period n= number of periods for which annuity will last b) If you can earn 12 percent on your investments, and you would like to accumulate $120,000 for your newborn child's education at the end of 18 years, how much must you invest annually to reach your goal? [05 Marks] FVn=PMT[i(1+i)n1] FVn=FV of annuity at the end of nth period. PMT = annuity payment deposited or received at the end of each period i= interest rate per period n= number of periods for which annuity will last 7 c) What is the present value of an annuity of $70,000 to be received at the end of each year for 10 years given a 10 percent discount rate? [05 Marks] Present Value =PMT[1i(1+i)n1] PMT = annuity payment deposited or received i = discount rate (or interest rate) n= number of periods d) What is the present value of a stream of payment where the Year 1 payment is $100,000 and the future payment growth at a rate of 6% per year? The interest rate used to discount the payment is 10%. [05 Marks] PV=igPMTpenod1