QUESTION $2(25$ MARKS$)$

a$)$ With a $7\%$ discount rate, determine the value on $1$ January $2023$ of the following cash flows:

$\backslash$table$[[$Date Cash Received,Amount of Cash $($RM$)],[1$ January $2024,14,000],[1$ January $2025,20,000],[1$ January $2026,30,000],[1$ January $2027,43,000],[1$ January $2028,57,000]]$

$(6$ marks$)$

b$)$ Ravi has been depositing money at the end of each year into an account drawing $6\mathrm{.}5\%$ compound interest per annum. Calculate the balance in the account at the end of year four if he deposited the following amounts:

$\backslash$table$[[$Year$,$End of Year Deposit$],[1,$RM$350],[2,$RM$500],[3,$RM$725],[4,$RM$400]]$

$(5$ marks$)$

c$)$ Chong invests RM$2,500$ at a variable rate of interest. Initially, the rate is $5\%$ compounded annually for the first year, and the rate increases half percent annually $(0\mathrm{.}5\%)$ for five years. Compute how much will he have in the account after five years.

$(3$ marks$)$

d$)$ Mr Rafizi is planning to start saving for his son's college education fund. When the time comes, he wishes to accumulate RM$45,000$ at the end of $17$ years. Assuming that his savings account will pay $6\mathrm{.}5\%$ compounded annually, calculate how much would he will have to deposit if: