Problem (10 points). Answer the following questions using time value of money calculations. Round all answers to the nearest whole dollar.

ACAI

VARIOUS SITUATIONS REQUIRING TIME VALUE OF MONEY ANALYSIS

(1) Acai is starting a retirement account. He plans to retire in 40 years. He expects to be able to save $50 per month at the end of each month for retirement over those 40 years. If he can average a 6% return, compounded monthly, how much will he have in the account at the end of the 40 years?

(2) Acai is considering the purchase of a new home. The price of the house he wishes to purchase is $100,000 and he expects to put a $5,000 down payment on the house. He will borrow the other $95,000 from the bank and will pay it back over 30 years in equal monthly payments at the end of each month. If the bank is going to charge him an interest rate of 6.5% per year, compounded monthly, what will be the amount of his monthly house payment?

(3) Acai needs to accumulate $5,000 in two years in order to make the down payment on his house in (2) above. If he can earn 8% on his investment, compounded daily (365 days per year), how much must he invest today to accomplish this?

(4) Acai's grandmother just died and left him $50,000 in a trust account. However, the money cannot be withdrawn until five years after her death. If the trustee of the account can invest this money at an average rate of 10% per year, compounded quarterly, how much will he have in the account at the end of the five years?

Answer the following questions using time value of money calculations. Round all answers to the nearest whole dollar