12. Lee Childs is negotiating a contract to do some work for Haas Corp. over the next five years. Haas proposes to pay Lee $10,000 at the end of each of the third, fourth and fifth years. No payments will be received prior to that time. If Lee discounts these payments at 8%, what is the contract worth to him today? 13. The Tower family wants to make a home improvement that is expected to cost $60,000. The family wants to fund as much of the cost as possible with a home equity loan, but can afford payments of only $600 per month. The family's bank offers equity loans at 12% compounded monthly for a maximum term of 10 years. a. How much can the Tower family borrow? b. How much does the Tower family need as a down payment? c. The family's bank account pays 8% compounded quarterly. If the family delays starting the project for two years, how much would the family have to save each quarter to make the required down payment if the loan rate and estimated cost remains the same? 12. Lee Childs is negotiating a contract to do some work for Haas Corp. over the next five years. Haas proposes to pay Lee $10,000 at the end of each of the third, fourth and fifth years. No payments will be received prior to that time. If Lee discounts these payments at 8%, what is the contract worth to him today? 13. The Tower family wants to make a home improvement that is expected to cost $60,000. The family wants to fund as much of the cost as possible with a home equity loan, but can afford payments of only $600 per month. The family's bank offers equity loans at 12% compounded monthly for a maximum term of 10 years. a. How much can the Tower family borrow? b. How much does the Tower family need as a down payment? c. The family's bank account pays 8% compounded quarterly. If the family delays starting the project for two years, how much would the family have to save each quarter to make the required down payment if the loan rate and estimated cost remains the same