11. Solve This questions.

11. The present value (t = 0) of the following cash flow stream is $5,979.04 when discounted at 12% annually. What is the value of the MISSING (t = 2) cash flow? [$2,999.93] 0 1 2 3 4 $0 $1,000 $? $2,000 $2,000 12. You want to set up a trust fund. If you make a payment at the end of each year for twenty years and earn 10% per year, how large must your annual payments be so that the trust is worth $100,000 at the end of the twentieth year? [$1,745.96] 13. Starting on January 1, 1987, and then on each January 1 until 1996 (10 payments), you will make payments of $1,000 into an investment which yields 10 percent. How much will your investment be worth on December 31 in the year 2006? [$45,468.85] 14. Your b9year-old aunt has savings of $35,000. She has made arrangements to enter a home for the aged upon reaching the age of 80. Before going into the home, she wants to decrease the account balance by a constant amount each year for ten years, with a zero-balance remaining. How much can she withdraw each year if she earns 6 percent annually on her savings? Her first withdrawal would be one year from today. [$4,755.37] 15. A rich aunt promises you $35,000 exactly 5 years after you graduate from college. What is the value of the promised $35,000 if you could negotiate payment upon graduation? Assume an interest rate of 12 percent. [$19,859.94]