While providing answers, you must show all the calculations intermediate processes to derive the final answer.

1. Solve the following TVM problems.

A. If you have $100 in a saving account that pays 5% interest per annum, how much money will be in your saving account after five years?

B. If you put $100 each month in your investment account for the next 35 years, how much money will be accumulated if the rate of return on your investment fund is 6% per annum. Note that the monthly rate will be 0.5%.

C. If you would like to double your investment in 7 years, what rate of return (per annual) should be generated by your investment fund?

D. You have $100,000 to put in a high interest saving account. Bank A offers you 3% interest per annum but compounded monthly whereas Bank B offers you 2.9% interest per annum but compounded daily. Which bank would you choose and why? Note: you must find the effective annual rate (EAR) to answer this question.