a. Question 1: You wish to have an investment that will bring about $50 000 in ten years, and the rate of return is 8% per annum. Required: In term of time value of money, what is the amount of $50,000 represent? b. How much do you need to invest now if the rate is compounded annually (to the nearest dollar)? If you have $50,000 now and put the sum into a bank account that pays 5% per year. How much will you have in 8 years if the rate is compounded semi- annually, quarterly, monthly and daily (to the nearest dollar)? C. Question 2. You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child's higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly. Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly. Required: Work on question a, b and conly a) Identify which Bank should Molly choose in Investment 1 by computing the effective annual interest rate (EAR)? b) Calculate the amount of money Molly would accumulate in Investment 1 after 15 years is she chooses Bank B? c) How much is the annual interest rate, assuming compounding annual should aims at if she chooses to invest her $120 000 in a saving accoun the 450,000 fund ready in just 10 years from now