Question 2a. Calculate the present value of $15,000 to be received 10 years from today. Assume aninterest rate of 10%, compounded annually.b. The annual amount of a series of payments to be made at the end of each of the next10 years is $500. What is the present worth of the payments at 7% interestcompounded annually?c. A piece of machinery costs $20,000 and has an estimated life of 8 years and a scrapvalue of $2,000. What uniform annual amount must be set aside at the end of each ofthe 8 years for replacement if the interest rate is 6% compounded annually?d. If $15,000 is put in a bank account today at an interest rate of 8%, what annualamount of money can be withdrawn every year over the next 7 years?e. An engineer has generated an oil production forecast for a group of wells. Accordingto this forecast, the wells produce 30,000 barrels in the first year. Starting the secondyear, production declines by 2,000 barrels per year for 4 years. Starting the sixth year,production declines by 3,000 barrels per year for another 4 years. Calculate thepresent value of the revenues if the oil price is $15 per barrel for the first 5 years and$16 per barrel thereafter. Also, calculate the equivalent annual value of theserevenues. Assume interest rate of 8%. Question 1a. What is the significance of a demand curve and a supply curve?b.Suppose $2,000 is borrowed at a simple interest rate of 8%. Calculate (i) the principalplus interest at the end of the 6th year? (ii) what will be the future value if the interestwas compounded within the stated period?c. What is meant by the terms discounting and compounding? Why are these importantin investment analysis?d. What is the difference between simple and compound interest?e. Compare the interest earned on $1,500 over:(i)10 years at an interest rate of 8%, compounded yearly, and(ii)10 years at an interest rate of 8%, compounded quarterly.f. Calculate the future value of the following investments.(1)$1,000 in 10 years at an interest rate of 8%, compounded annually.$15,000 in 8 years at an interest rate of 8%, compounded monthly.(ii)

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Question 1 a. What is the significance of a demand curve and a supply curve? b. Suppose $2,000 is borrowed at a simple interest rate of 8%. Calculate (i) the principal plus interest at the end of the 6th year? (ii) what will be the future value if the interest was compounded within the stated period? C What is meant by the terms discounting and compounding? Why are these important