1. Life & Health Insurance Company offers you the following plan: during the next 30 years you pay $2,000 at the end of each year. Starting at the end year 31, you (or your heirs) will receive a pension for the following 15 years. The discount rate used by the company to calculate your pension is 5%. What is the size of your annual pension? b If you could take a one-time lump sum payment at the end of year 35 instead of the pension, what would the lump sum payment be? a. 2. You estimate that you will need $65.000 to send your child to a university in eight years. You have about $25,000 now. If you can earn 15%, will you make it? At what rate will you just reach your goal? 3. You think that you will be able to deposit $4,000 at the end of each of the next three years in a bank account paying 8% interest. You currently have $7.000 in the account. How much will you have in three years? In four years? 4. You are offered an investment that will make three $5,000 payments. The first payment will occur four years from today. The second will occur in five years, the third will follow in six years. If you can earn 11%, what is the most this investment is worth today? What is the future value of the cash flows? 5. After carefully eng over your budget, you have demonstrated you can afford to pay $632 per month towards a new sports car. You call your bank and find out that the going interest rate is 1% per month for 45 months. How much can you