13) You want to buy a house, 4 years from now, and you plan to save $60,000 per year, beginning one year from today. You will make 4 deposits in an account that pays 2.5% interest. Your account already has a balance of $50,000. How much will you have just after you make the 4th deposit, 4 years from now (in S'000s)? a. $249 b. $304 c. $331 d. $338 $345 14) Your father is about to retire, and he wants to buy an annuity that will provide him with $100,000 of income per year for 20 years, beginning a year from today. The going rate on such annuities is 1.0%. How much would it cost him to buy such an annuity today in $'000s)? a $1,059 b. $1,447 C. $1,805 d. $2,009 e. $3,487 Page 3 15) Your father is about to retire, and he wants to buy an investment that will provide him with $100,000 of income per year for 20 years, beginning a year from today. In addition, on the 20th anniversary (when the last payment of $100,000 occurs), he wants to withdraw a lump-sum of $250,000 (in addition to the last receipt of $100,000). The going rate on such annuities is 1.0%. How much would it cost him to buy such an annuity today (in $'000s)? a $1,059 b. $1,447 c. $1,805 d. $2,009 e. $3,487