$1.$ At an interest rate of $12\mathrm{.}5\%$ per annum, cash flows of $$2000$ in $2$ years, $$12000$ in $7$ years and $$8000$ in $20$ years have a future value in $20$ years of

a$.$$$71,593\mathrm{.}52$

b$.$$$70,994\mathrm{.}74$

c$.$$$80,147\mathrm{.}38$

d$.$$$73,730\mathrm{.}20$

$2.$ When Bank A lends money to Bank B in the inter$-$bank overnight market, this is an example of one of the functions of the financial system. Choose the most likely function that this transaction represents.

a$.$A settlement of commercial transactions.

b$.$A flow of funds that enables Bank A to earn a return on its excess funds.

c$.$A flow of funds that enables Bank B to earn a return on its excess funds.

d$.$A flow of funds that enables Bank B to earn a return on its excess funds.