Time value of money

1. A parent is setting up a trust fund for his daughter which is expected to be worth GH200,000 in ten years when she is ready to marry. Given that the relevant discount rate is 12% per annum, what should be the onetime investment that this parent should make today to achieve his perceived target. Assume monthly compounding.
2. The parent has the alternative of making ten annual contributions into the fund that will grow to GHS 200,000 ten years from now. Under this arrangement, she makes the first payment immediately and then nine subsequent payments. How much should the annual payments be under this arrangement? A timeline may help you conceptualize this scenario correctly. (5 marks)
3. An investment firm has assured you that their returns are attractive, and that any funds invested with them would double in 5 years. How much is this attractive rate of return?