Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000. ) Pour unde deposits an amount today in a bank paying 4% annual interest, which will provide the needed $5,000 payments. a. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent. An investment wil pay $100 at the end of each of the next 3 years, $250 at the end of Year 4,$300 at the end of Year 5 , and $500 at the end of Year 6 . If other investments of equal risk earn 12% annually, what is its present value? Its future value? Do not round intermediate caleulations. Round your answers to the nearest cent. Present value: $ Future value: 5 Your parents will retire in 26 years. They currently have $380,000 saved, and they think they will need $2,350,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. Find the future values of the following ordinary annulties: a. FV of $200 paid each 6 months for 5 years at a nominal rate of 5% compounded semiannually. Do not round intermediate caiculations. Round your answer the nearest cent. b. FV of $100 pald each 3 months for 5 years at a nominal rate of 5% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. 5 c. These annuities receive the same amount of cash during the s-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larper than the one in part a. Why does this occur? If you deposit money today in an account that pays 11.5% annual interest, how long will it take to double your money? Round your answer to two decimal years Find the present value of $700 due in the future under each of these conditions: a. 12% nominal rate, semiannual compounding, discounted back 6 years. Do not round intermediate calculations. Round your answer to the nearest cent. b. 12% nominal rate, quarterly compounding, discounted back 6 years. Do not round intermediate calculations. Round your answer to the nearest cent. c. 12% nominal rate, monthly compounding, discounted back 1 year. Do not round intermediate calculations. Round your answer to the nearest cent. 5 you deposit $5,000 in a bank account that pays 8% interest annually, how much will be in your account after 5 years? Do not round intermediate caiculations. and your answer to the nearest cent. You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 12% ApR based on end-ofmonth payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent. Financed for 48 months: 5 Financed for 60 months: 5