art C: Time Value of Money (12 Marks) 1. Suppose you want to save money to pay for a down payment on an apartment in 5 years' time. One year from now, you will invest your $30000 year-end bonus for the down payment. If you can invest at 15% per year, how much interest will you receive on your cash in 5 years? If you need $210000 for the down payment and you would like to top up remaining amount by investing a lump sum today, what is the amount you should invest? (Show Necessary Calculation) (4) 2. Suppose Pablo Escobar wants to accumulate the tuition fees for his master's in criminology program. He must pay full amount of tuition fees at the beginning of his study in 2025 . The tuition fee at the end of year 2022 is $25000 which will increase by 3% at the end of every year. Pablo will start working from January 2023 for another two years before commencing his master's in criminology degree. If he saves $9000 and $12500 respectively in two years and gets 12% on his savings and his father gives him $4500 before commencing his study, will he be able to pay the full amount of his masters by himself? (Show Necessary Calculation) (4) 3. Mr. \& Mrs. Pribel wish to purchase a boat in 8 years when they retire. They are planning to purchase the boat using proceeds from the sale of their property which is currently worth $90,000 and its value is growing at 7 percent a year. The boat is currently worth $200,000 increasing at 5 percent per year. In addition to the value of their property, how much additional money should they deposit at the end of each year in an account paying 9 percent annual interest in order to be able to buy the boat upon retirement? (4)