(a) Issues related to time value of money: (1) Hup Seng has just bought a scratch lottery ticket and won RM10,000. He wants to finance the future study of his newly born daughter and invests this money in a fund with a maturity of 18 years offering a promising yearly return of 6%. What is the amount available on the 18th birthday of his daughter? (3 marks) (11) Ramly will retire in 20 years. This year he wants to fund an amount of RM15,000 to become available in 20 years. How much does he have to deposit into a pension plan earning 7% annually? (3 marks) (iii) The National Savings Fund promises a monthly 0.75% return if you deposit RM100 per month for 15 consecutive years. What amount will be accumulated after those 15 years? (3 marks) (iv)Wuhan has just bought a house. She estimates that the roof will have to be renewed at a cost of RM25,000 after 20 years. To cover these costs, she intends to save an equal amount of money at the end of each year, earning 6% annual interest rate. How much is such a yearly annuity? (4 marks) (v) A company buys a piece of equipment for RM2 million on January 1. The expected useful life is 6 years and the salvage value is estimated zero. The company intends to replace the equipment identically. The average expected price increase is 8% yearly. For this purpose, the company creates a special fund with annual equal payments at the end of each year during the lifetime. Cost of capital and earnings of the fund (1) is 10% per year. Compute the annual payment into the fund. (7 marks)