12. Calculating Perpetuity Values (LO1) In the previous problem, suppose a sales associate told you the policy costs $475,000. At what interest rate would this be a fair deal? 5. Calculating Annuity Cash Flows (LO1) If you put up $45,000 today in exchange for a 6.25% 15-year annuity, what will the annual cash flow be? money is worth 5% compounded monthiy, what is the casn value or the lease? 11. Calculating Perpetuity Values (LO1) The Sutherland Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this investment is 5,8%, how much will you pay for the policy? 33. Calculating Annuities (LO1) You are planning to save for retirement over the next 30 years. To do this, you will invest $800 a month in a stock account and $400 a month in a bond account. The return of the stock account is expected to be 10%, and the bond account will pay 6%. When you retire, you will combine your money into an account with a 9% return. How much can you withdraw each month from your account assuming a 25-year withdrawal period? Assume that the APR is compounded monthly. 41. Calculating the Number of Payments (LO2) You're prepared to make monthly payments of $290, beginning at the end of this month, into an account that pays 7% interest compounded monthly. How many payments will you have made when your account balance reaches $20,000 ? 1. Present Value and Multiple Cash Flows (LO1) Buena Vista Co. has identified an investment project with the following cash flows. If the discount rate is 10%, what is the present value of these cash flows? What is the present value at 18%? At 24%