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You are required to provide solutions to the following problems using Time Value of Money techniques: i. Find the value of $10,000 earning 5% interest

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You are required to provide solutions to the following problems using Time Value of Money techniques: i. Find the value of $10,000 earning 5% interest per year after two years. ( 2 mks) ii. Find the value of $10,000 in 10 years. The investment earns 8% for four years and then earns 4% for the remaining six years. ( 3mks ) iii. How much do I need to invest at 8% per year, in order to have $10,000 in ten years (2 mks) v. An investor deposits $10,000. Ten years later it is worth $17,910. What rate of return did the investor earn on the investment? ( 3mks ) vi. What is the future value of $100 after 5 years at 12 percent compounded quarterly ( 2mks) vii. What is the value of the following set of cash flows today? The interest rate is 8% for all cash flows. (4 mks) viii. What is the future value of a 4-year ordinary annuity, if the annual interest is 5%, and the annual payment is $1,000 ? ( 3mks ) ix. Compare the payments of the annuity due with i=5%, shown in the time line below, with those of the ordinary annuity in part (viii). a) What is the difference and how does this difference affect its value? (3 mks) b) What is the present value of the four-year annuity due? (3mks) (Total =25 marks)

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