1. Time Value of Money (20 points) 1) You have P25,000 to save for one year and a bank will pay you 2% per annum for use of your money. What will be the value of your savings after one year? (2 points) 2) You plan to invest P50,000 now for three years and a bank will pay you compound interest of 2.5% per year. What will be the value after three years? (2 points) 3) You plan to invest P20,000 each year beginning next year for five years at a 3% compound interest rate. What will be the future value of your investment? (2 points) 4) You need P24,000 each year beginning next year for ten years and a bank will pay 3% compound interest rate on your deposit. How much do you need to deposit now to realize this? (2 points) 5) Compute for amortization due and create amortization schedule on the following: (12 points) You borrowed money from BPI Savings with the following tenor Amount P150,000 Interest 8% p.a. Monthly payment 1 year to pay Question: How much is total interest paid on the loan? What is loan balance after 8 payments? II. Interest Rates (10 points) Given the following expected interest rates today Maturity Yield . 1 year 3.5% . 2 years 3.75 . . 3 years 4.0 4 years 4.25 . 5 years 4.5 and if the pure expectations theory holds, what does the market expect interest rate will be 1) a one-year security, one year from now? (5 points) 2) Two-year securities, three years from now? (5 points)