1. A payment schedule requires 25 annual payments of $20,000, the first payment to be made 10 years from today. Using a discount rate of 8%, what is the present value of this series of payments? (2 marks) 2. Assume the payment schedule in problem 1 changes as follows: . the payment 15 years from today is waived, and . a payment of $30,000 is made 18 years from today. The other payments are unchanged. Using a discount rate of 10%, what is the present value of this series of payments? (2 marks) 3. Jason is celebrating his 32th birthday today and wants to start saving for his anticipated retirement at age 65. He wants to be able to withdraw $20,000 from his savings account on each birthday for 20 years following his retirement; the first withdrawal will be on his 66th birthday. Jason intends to invest his money in the local savings bank, which offers 6 per cent interest per year. He wants to make equal, annual payments on each birthday in a new savings account he will establish for his retirement fund. If he starts making these deposits on his 33rd birthday and continues to make deposits until he is 65 (the last deposit will be on his 65th birthday), what amount must he deposit annually to be able to make the desired withdrawals on retirement? (3 marks) 4. Calculate an equivalent annual income stream to be received for 40 years based on the following 30 year income stream, using an interest rate of 5% per annum compounded annually (in other words, convert the stream of payments over 30 years into a stream of payments over 40 years): Years 1-15 $15,000pa Years 16-20 $20,000pa Years 21-30 $30,000pa