Question seven:

You estimate that you will need sh $80,000$ in eight years, and currently you have sh $35000$ at what rate of return will you reach your goal? A friend of yours is concerned about a retirement scheme where he has an option of depositing $$1000$ today, $$2000$ in two years and $$2000$ in five years but he can withdraw $$1500$ in three years and $$1000$ in seven years assuming no withdrawal penalties how much will he have after $8$ years if the rate of interest is $7\%.$ What is the present value of these cash flows?

$[10$ marks$]$