First Three Letters Name: - Hmk-5B (Variable pts) Exercise #1: You want to retire in 22 years. To fund the retirement, you deposit $10,000 into an account now and plan to save an equal amount each year. Once you retire, you want to withdraw $45,000 at the end of each year for 18 years. -6%. How much do you need to save at the end of each year for the next 22 years? Draw the time line, work your calculator entries. You will need ............(1)................... in your account 22 years from now to cover your retirement needs. You will need to save $......... ............................ per year. 6%? Draw the Exercise N2: An annuity pays $600 a year for 7 years, the first payment is in 4 years. time line, show your work or calculator entries. The PV of the annuity is ........[3]... Exercise #3: An annuity due pays $400 a year for 4 years ?r=6%. What is its PV? What is its FV in 4 years? Draw the time line, show your work or calculator entries. PV- FV = $.. ...[4).... . ......... ... . By how much is the annuity due in Exercise #3 worth (PV) more than a 4-year $400 ordinary annuity? PV Ord Ann = $........[6]. Difference = $. .......17) Exercise #4: The inflation rate is 3% per year. How much is a car that will cost $73,000 in 25 years worth now? S.. ...(8). Exercise #5: You are leasing a car worth $32,000 for 36 months. You put down $1200 now and agree to monthly payments. The residual value is $17,000. The financing rate is 6% (monthly compounded). How much are your monthly payments going to be? Draw the timeline, work the calculator entries 0 1 2 36 $ 19) What is the EAR in this problem? EAR= _[10) -_...%