Please write out work and formulas (not just excel sheets)

1. Covering the Payments (20 points) (a) How much invested today (period 0) at a rate of 10% per year compounded annually would be just sufficient to provide five payments detailed below? Please draw the cash flow diagram. (10 points) End of Period Pavments Year 1: $0 Year 2: $1250 Year 3: $1500 Year 4: $1750 Year 5: $2000 (b) Complete the table below to show that the amount you calculated in part (a) does, in fact, just cover the five payments. Round the Year 5 Ending Balance to the nearest $1. (10 points) Year 0 1 2 4 Beginning Balance Interest Payment Ending Balance