Jed is going to receive $10,000 from a trust setup by his grandmother for him. He is to receive this at the end of the third years. If he can earn 8%, how much is it worth in today's dollars. (Draw a time line and use both the formula and financial calculator methods) (7pts) 4. 5. You wo start your first job. You figure you will need $15,000 a year to support you with suntan lotion. If you can earn 12% return, how much money would you have to deposit into an account today? (Draw a time line and use both the formula and financial calculator methods) (7pts) uld like to go to Hawai at the end of this year and lie on the beach for 3 years before you Blue Hawais and 6. At a rate of 12%, what is the present value of the following cash flow stream? $0 at Time 0, so at the end of Year 1; $100 at the end of Year 2; $200 at the end of Year 3; and $300 at the end of Year 4; and $400 at the end of Year 5; and $500 at the end of Year 6; and $600 at the end of Year 7? (Draw a time line and use both the formula and financial calculator methods) (7pts) You want to buy a Nissan 350 Z on your 27th birthday. You have price these cars and found that they currently sell for $30,000. You believe that price will increase by 6% per year until you are ready to buy it. You can presently invest to earn 10%. If you just turned 20 years old, how much you invest at the end of the next 7 years to be able to purchase the Nissan in 7 years? (Two-step problem) (8pts) 7