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Problem 5-5 (Algo) Investment decision; varying rates (LO5-3, 5-8] John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The Claussens anticipate that the store will generate cash flows of $85,000 per year for 20 years. At the end of 20 years, they intend to sell the store for an estimated $550,000. The Claussens will finance the investment with a variable rate mortgage. Interest rates will increase twice during the 20- year life of the mortgage. Accordingly, the Claussens' desired rate of return on this investment varies as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Years 1-5 Years 6-10 Years 11-20 98 11% Required: What is the maximum amount the Claussens should pay John Duggan for the hardware store? (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) PV of $85,000 cash flow PV of $550,000 selling price Maximum paid for store Years 1-5 Years 6-10 Years 11-20 Year 20 Total $ 0 + $ 0 Lowlife Company defaulted on a $160,000 loan that was due on December 31, 2021. The bank has agreed to allow Lowlife to repay the $160,000 by making a series of equal annual payments beginning on December 31, 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the required annual payment if the bank's interest rate is 10% and four payments are to be made. 2. Calculate the required annual payment if the bank's interest rate is 8% and five payments are to be made. 3. If the bank's interest rate is 10%, how many annual payments of $27,783 would be required to repay the debt? 4. If three payments of $59,858 are to be made, what interest rate is the bank charging Lowlife? X Answer is not complete. Complete this question by entering your answers in the tabs below.Problem Required 1 Required 2 Required 3 Required 4 Calculate the required annual payment if the bank's interest rate is 8% and five payments are to be made. (Round your final answers to nearest whole dollar amount.) Complete this question by entering your answers in the tabs below.Problem Required 1 Required 2 Required 3 Required 4 Calculate the required annual payment if the bank's interest rate is 8% and five payments are to be made. (Round your final answers to nearest whole dollar amount.) Table or calculator function: Present Value: n = Annual Installment