You wish to have an investment that will bring about $20 000 in five years, and the rate of return is 8% per annum. Required:

a. In term of time value of money, what is the amount of $20,000 represent?

b. How much do you need to invest now if the rate is compounded annually (to the nearest dollar)?

c. If you have $20,000 now and put the sum into a bank account that pays 5% per year. How much will you have in 6 years if the rate is compounded semi-annually, quarterly, monthly and daily (to the nearest dollar)?