Question 5 You are required to use the Present and Future Value Tables provided to answer these questions. Jason deposits $5,000 today for three years to earn interest at a rate of 6% per year compounded annually. Compute the value of the investment at the end of the third year. (5 marks) (b) John is planning to retire today. He wishes to purchase an annuity that will pay him $3,000 at the end of each year for the next five years. If the current interest rate is 1% compounded annually, how much will John have to pay for the annuity today. (5 marks) Lucy deposits $10,000 into a bank at an interest rate of 12% p.a, compounded quarterly for two years. What amount will Lucy receive from the bank at the end of the two years? (5 marks) Danny has just deposited $10,000 into his savings account which earns annual compound interest at the rate of 7%. Calculate the amount of money Danny would have if this money is kept in the bank for 5 years (5 marks) (c)