plz solve step by step

CHAPTER TIME VALUE OF MONEY Q1. Your grandfather has offered you a choice of one of the three alternatives: $ 5,000 now; $ 1,000 a year for eight years; or $12,000 at the end of eight years, assuming you could earn 11 percent annually, which alternative should you choose? If you could earn 12 percent annually, would you still choose the same alternative? Q2 .You need $30,750 at the end of eight years, and your only investment outlet is a 12 percent long- term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Q3.Brain Hirt stared a paper route on January 1, 1980. Every three months, he deposits $250 in his bank account, which earns 8 percent annually but is compounded quarterly. On December 31, 1984, he used the entire balance in his bank account to invest in a certificate of deposit at 12 percent annually. How much will he have on December 31, 1987 Q4 .On January 1, 1985, Mr. Strong bought 100 shares of stock for $13 per share. On December 31, 1987, he sold the stock for $20.50 per share. What is his annual rate of return? Interpolate to find the exact answer Q5. Donald Johnson has just given an insurance company $20,000. In return, he will receive an annuity of $1,800 for 20 years. At what rate of return must the insurance company invest this $20,000 in order to make the annual payments? Interpolate. Q6.Mary Mills has retired after 35 years with the Electric Company her total pension funds have an accumulated value of $300,000, and her life expectancy is 18 more years. Her pension fund manager assumes that she can earn an 8 percent return on her assets. What will her yearly annuity be for the next 18 years? Q7 You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annuity of $12,000 for 25 years after retirement. During the period before retirement you can earn 8 percent annually, while after retirement you can earn 10 percent on your money. What are your annual contributions to the retirement fund to allow you to receive the $12.000 annuity? 08. If you borrow $9,725 and are required to repay the loan in five equal annual installments of $2,500, what is the interest rate associated with the loan? Q9If your uncle borrows $50,000 from the bank at 10 percent interest over the eight-year life of the n, what equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest (round to the nearest dollar)? How much of his first payment will be applied to interest? To principle? How much of his second payment will be applied to each? Amortization Schedule Q10. If investors are to earn a 4 percent real interest rate, what nominal interest rate must they earn if the inflation rate is: a zero b.4 percent c. 6 percent Q 11. EAR versus APR. You invest $1,000 at a 6 percent annual interest rate, stated as an APR. Interest is compounded monthly. How much will you have in 1 year? In 1.5 years? Q12.Perpetuities. A local bank advertises the following deal: "Pay us $100 a year for 10 years and then we will pay you (or your beneficiaries) $100 a year forever." Is this a good deal if the interest rate available on other deposits is 8 percent? Q13 Perpetuities. A local bank will pay you $100 a year for your lifetime if you deposit $2,500 in the bank today. If you plan to live forever, what interest rate is the bank paying? Q14.Perpetuities. A property will provide $10,000 a year forever. If its value is $125,000, what must be the discount rate