a) Lona places $2300 in a savings account paying 8 % interest compounded annually. She wants to know how much money will be in the account at the end of Seven years. (5: Marks)

b) Messi wishes to find the present value of $ 3,500 that will be received 12 years from now. Messi opportunity cost is 8%. (5: Marks)

c) An investment portfolio is any collection or combination of financial assets. Briefly explain why the investors will prefer to hold portfolios?