I'm having a difficult time with this assignment. I'm trying to calculate the problem from the chapters in the text. I'm not fully understanding the calculations. I have attached the problems.

**Note: I need to show all calculations. I think this will also help me understand the problems and how to calculate future assignments.

Thanks!

Text Assignment - Week 3 Lori Haozous FIN/419 November 16, 2015 James Hagist Problem 1: Mayor Bill de Blasio as part of his personal budgeting process, he has determined that in each of the next 5 years he will have budget shortfalls. In other words, he will need the amounts shown in the following table at the end of the given year to balance his budgetthat is, to make inflows equal outflows. He expect to be able to earn 7 % on the investments during the next 5 years and wish to fund the budget shortfalls over the next 5 years with a single amount. 1. $ 7,000 2. $ 4,000 3. $ 8,000 4. $ 10,000 5. $ 13,000 a. How large must the single deposit today into an account paying 7% annual interest be to provide for full coverage of the anticipated budget shortfalls? b. What effect would an increase in your earnings rate have on the amount calculated in part a? Explain? Problem 2: Rand Paul borrowed $25,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end of year payments. a. Calculate the annual, end-of-year loan payment. b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time. Problem 3: Paul Cruz is shopping for a used car. He has found one priced at $6,500. The dealer has told Tony that if he can come up with a down payment of $500, the dealer will finance the balance of the price at a 14% annual rate over 2 years (24 months). a. Assuming that Tony accepts the dealer's offer, what will his monthly (end-of-month) payment amount be? b. What would Tony's monthly payment would be if the dealer were willing to finance the balance of the car price at a 9% annual rate