1 (25 MARKS) a) With a 9% discount rate, determine the value on 1/1/13 of the following cash flows: b) Date Cash Received 1/1/14 1/1/15 1/1/16 1/1/17 1/1/18 Amount of Cash RM14,000 RM20,000 RM30,000 RM43,000 RM57,000 (Round your answer to the nearest RM10). (6 marks) You have been depositing money at the end of each year into an account drawing 9.5% interest. Calculate the balance in the account at the end of year four if you deposited the following amounts. Year End of Year Deposit 1 RM350 2 RM500 3 RM725 4 RM400 (5 marks) c) You invest RM1,500 at a variable rate of interest. Initially the rate is 4% compounded annually for the first year, and the rate increases one-half of one percent annually for five years (year two's rate is 4.5%, year three's rate is 5.0%, etc.). Compute how much will you have in the account after five years. d) 2 (3 marks) BBF201/03 Assignment 2 HOMBA Bank is offering you a loan at 10%; payments on the loan are to be made monthly. AMBA Bank is offering you a loan where payments are to be made semiannually; the rate on the loan is also 10%. CIMBA Bank is also offering a loan at 10% where the payments are made quarterly. Justify which loan has the lowest annual cost