Question Three a. At the beginning of your fresh year GTUC, your parents deposit GH10,000 into a four- year bank certificate of deposit (CD) that pays 8% annual interest. You will receive the money in the account (including the accumulated interest) if you graduate with honors in four years. How much will there be in the account after four years? (5 marks) b. Your grandmother urged you to begin a habit of saving money early in your life. He suggested that you put GH1,825 per year. Your grandmother further suggested that you invest the money at the end of the year in an online brokerage mutual fund account that has an annual expected return of 8%. You are 18 years old. If you start following your grandmother's advice today, and continue saving in this way of your life, how much do you expect to have in the brokerage account when you are 65 years old? (5 marks) c. What is the present value of a perpetuity that pays GH120.00 per year beginning one year from now if the appropriate interest rate is 6%. (3 marks) d You will retire in 18 years. You currently have GH$250,000 saved, and you think you will need GH1,000,000 at retirement. What annual interest rate must you earn to reach your goal, assuming you do not save any additional funds? (4 marks) e. Differentiate between discounting and compounding. (5 marks) f. Explain the following: capital market and money market. (5 marks) g. What is finance? (5 marks) h Explain four (4) factors that are considered in choosing between long-termand short-term borrowing. (8 marks) TOTAL: 40 MARKS