mobily 4G 8:33 PM 11%; Back Assignment 1 2. In 1790 Benjamin Franklin left $4,600 each to the cities of Philadelphia and Boston. He stipulated that the money be invested and that the principal not be touched for 100 years a. If the money had been invested at 4%, compounded yearly, how much would each city have had in 1890? b. How much if it had been invested at 5%, compounded yearly? C. 3. Calculate the present value of $1,000 to be received at the end of 8 years. Assume an interest rate of 7 percent. 4. What is the effective annual percentage rate (EAR) of 12 percent compounded monthly? 5. If you deposit $10,000 in a bank account that pays 10 percent interest annually, how much money your account after 5 years? will be in 6. Your parents are planning to retire in 18 years. They currently have $250,000 and they would like to have $1,000,000 when they retire. What annual interest rate would they have to earn on their $250,000 in order to reach their goal, Assume they save no more money