Please answer 17-20 and explain your answer

17. What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $4,800? a. $352.56 b. $255.84 c. $349.44 d. $283.92 e. $312.00 18. You just deposited $2,000 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now? a. $15,472.46 b. $19,340.58 c. $11,604.35 d. $18,566.96 e. $14,234.67 19, Farmers Bank offers to lend you $50,000 at a nominal rate of 5.0% simple interest, with interest paid quarterly. Merchants Bank offers to lend you the $50,000, but it will charge 6.8%, simple interest, with interest paid at the end of the year. What's the difference in the effective annual rates charged by the two banks? a. 2.07% b. 2.00% C. 1.73% d. 1.71% e. 2.12% 20. John and Daphne are saving for their daughter Ellen's college education. Ellen just turned 10 (att-0), and she will be entering college 8 years from now (at t- 8).College tuition and expenses at State U. are currently $14,500 a year, but they are expected to increase at a rate of 3.5% a year. Ellen should graduate in 4 years-if she takes longer or wants to go to graduate school, she will be on her own. Tuition and other costs will be due at the beginning of each school year (at t-8,9,10, and 11). So far, John and Daphne have accumulated $12,000 in their college savings account (att 0). Their long- un financial plan is to add an additional $5,000 in each of the next 4 years (at t-1,2,3, and 4). Then they plan to make 3 equal annual contributions in each of the following years, t-5, 6, and 7. They expect their investment account to earn 9%. How large must the annual payments at t-5, 6, and 7 be to cover Ellen's anticipated college costs? a. $3,758.85 b. $3,595.43 c. $4,085.71 d. $4,004.00 e. $4,698.57