3. (12 pts) On your co-op assignmentyour boss has asked you to analyze whether a more efficient motor with a life of 7 years should be installed on an assembly line. Estimated energy savings for the first year is $14,000 and then decrease by 5% annually. To pay for this motoryour company would need to withdraw money from an account paying 6% APR compounded annually. Your boss wants you to make the following recommendation: What is the maximum amount money you will recommend that your company be willing to pay for this new motor. 4. (19 pts) When you graduate and start your first job, you have decided that you will open and individual retirement account (IRA). Your goal is to have exactly $1 million in that account when you retire - you plan to retire 40 years from the day you start working. The bank IRA pays 8% nominal interest, compounded quarterly. You think your income will increase 7% per year throughout your career. You decide that you will make end of year deposits every year for the 40 years working. You plan to start your payments with a certain amount of deposit and increase your deposits by 7% each year. How much should you deposit the first year? 5. (20 pts) Your neighbors just had their first baby, Jordan. They want to send Jordan to a private high school and they are developing a plan to save for this education. They identified an investment account with 4% APR compounded monthly. They plan to make quarterly deposits with the first deposit 3 months from today (today is the day Jordan was born), and they plan to continue making quarterly deposits until Jordan's 14th birthday (they will make the final deposit on the 14th birthday). What quarterly deposit amount is needed to be able to withdraw $35,000 on each birthday from the 14th birthday through the 17th birthday to pay for the private high school education