You estimate that it will take five years to complete your university education. Your parents want to invest enough money today at 12 per cent to enable you to withdraw $5000 at the end of each year for the next five years with nothing left at the end of the five-year period. How much money do they need today? A. $8810 B. $18025 C. $25000 D. $ 31765 If $2000 is invested at 10 per cent at the start of every year for three years, how much will you have accumulated at the end of the three years? A. $6620 B. $6340 C. $6600 D. $ 6748 Magic Pty Ltd owes Jordan Pty Ltd money for the purchase of equipment. Jordan Pty Ltd has given Magic Pty Ltd three payment options. Option 1: Immediate payment of $38000 with no further payment. Option 2: Three annual payments of $15000 made at the end of each of the next three years. Option 3. A single payment of $48000 made at the end of the three years. Magic Pty Ltd uses a hurdle rate of 10 per cent for investment decisions. Which option should Magic choose and what is the present value of that option? A. Option 1 $38000 B. Option 2 $37305 C. Option 3 $34164 D. Option 3 $36048