Time Value of money is unquestionably the most important concept in modern financial management and financial decision-making. Use the time value of money tables or relevant formulae in determining the following:
1. Present value of an annuity of $5,000.00 for ten (10) years at 20% interest rate.
2. Present value of an annuity of $5,000.00 for ten (10) years at 20% interest rate compounded semi-annually.
3. Future value of an annuity of $15,000.00 for ten (10) years at 20% interest rate.
4. Future value of an annuity of $15,000.00 for ten (10) years at 20% interest rate compounded semi-annually.
5. You intend to build a $1,000,000.00 retirement fund over the remaining ten years of your work life. At a compound annual interest rate of 12%, how much must you contribute to the fund every year to accomplish your dream on retirement?
6. Before he was arrested and sentenced to a 20-year prison term for his last bank robbery, a very notorious bank armed robber was able to save his last loot of $250,000.00 into a fixed deposit account at the compound interest rate of 15%. On his release from prison, what would be the amount in his investment account?
(NOTE: All workings must be clearly shown)