Answer only if you are very sure. And answer all the parts briefly, and to the point.

CASE STUDIES IN FINANCE: Tom Fox After graduating from the University with a degree in Finance, Tom Fox took a position as a financial analyst with Clearwater Analytics in Newcastle. Although he had a student loan to make payments on, his goal was to save some funds for the next eight years in order to make a down payment on an apartment. After considering the various areas of Newcastle, Tom chose Sandyford area as his desired future residency. Based on median house price data, he found out that a two-bedroom, one hall house currently costs $98,000. Tom wants to make a down payment of 20 per cent. Because it will be eight years before Tom buys the apartment, the $98,000 price will surely not be the same in the future. To estimate the rate at which the median house price will increase, he considered the historical price appreciation in Newcastle. In the past, homes appreciated by nearly 4% per annum. Tom was satisfied with this estimation. Clearwater Analytics provides several opportunities for Tom to invest the funds that will be devoted to the purchase of his future home. he feels that a balanced account containing stocks, bonds, and Govt. securities would realistically achieve an annual rate of return of 6%. Questions: 1. Taking into consideration the fact that the $98,000 home price will grow at 4% per year, what will be the apartment's future selling price in Newcastle in 8 years? 2. What amount will Tom Fox have to accumulate as a down payment if he does decide to buy a house in Lakewood? 3. Based on your answer from Question 1, how much will have to be deposited at the end of each month into the Merrill Lynch account (which earns 6% per year) to accumulate the required down payment? 4. Should it make a difference if Tom makes the deposit at the beginning rather than the end of each month? Explain why