SECTION II (Show your work for full credit) la. Consider a 4-year amortized loan. You borrow $1.000 initially and repay it in 4 equal annual year-end payments. If the interest rate is 8%, what is the total annual payment? (3 points) 1b. Mike deposited $2,000 in a savings account earning 4% annual compound interest. How much would he have after 10 years? (3 points) le. Mike is planning to purchase a John Deere tractor in 5 years (1.c., 2027). He plans to make a $40,000 down payment when he makes the purchase in 5 years. How much lump sum of money would Mike need to put away today if he can earn 5% annual compound interest? (3 points) 1d. Alternatively, Mike realizes he can put down the same amount each year for 5 years to meet his $40,000 goal when he makes the down payment for the tractor. How much does he need to save each year in order to make $40,000 at 5% interest rate? (4 points) 3