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3. What is the future value of the following set of cash flows four years from now? Assume an interest rate of 5.5%. Year 0

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3. What is the future value of the following set of cash flows four years from now? Assume an interest rate of 5.5%. Year 0 2 3 4 Cash Flow -$800 $100 $300 $500 $700 A. $555.18 B. $585.72 C. $642.12 D. $687.77 E. $800.00 4. In order to help you through college, your parents just deposited $25,000 into a bank account paying 12% interest. Starting tomorrow, you plan to withdraw equal amounts from the account at the beginning of each of the next five years. What is the MOST you can withdraw annually? A. $6, 192.18 B. $7,988.91 C. $8,133.84 D. $7,548.02 E. $8,154.71 5. If $50,000 is borrowed at an annual interest rate of 8.7% for nine years, determine the annual payments made at the start of each year. A. $7,997 B. $7,897 C. $7,727 D. $7,627 E. $7,579

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