Rex is contemplating several monetary transactions. He has sought your advice for his various queries. (Formula and interest rate factors are provided for this question). You are required to advise him on the following situations: (a) He just purchased a flat for Rs70,000 and hopes to move into a single-family house in five years. How much will the flat be worth in five years if house prices are expected to rise by 8 per cent per annum? (2 marks) (b) He has inherited Rs6 million. He would like to use this money to invest in a new project costing Rs 7 million in two years from now. Will he have enough money to invest in the new project if