5. Upon graduation from Pepperdine with your BS degree you receive graduation gifts from friends and relatives that total $15,000. With your financial management professor's words ringing in your ears, you decide to open up a retirement account with your gifts. Your plan for this amount will be what you can afford to set aside for your retirement for the next five years. After five years you believe you will be established in your career, receive you MBA and can begin making annual deposits in the retirement account. a. If the account into which you deposit the $15,000 earns 6% interest each year, compounded monthly, what will the $15,000 be worth five years after graduation? Explain and show your computations. (six points). You stick to your plan and in five years you begin to make annual $2,000 deposits into the retirement account with a loyalty interest arrangement. At the start the account will earn 7% per year compounded monthly, and after five years the interest on the account will increase to 8.5% per year compounded monthly. b. What is the effective annual rate for the first five years of your retirement deposits? What is the effective annual rate for the last part of the deposit period? Explain and show your computations. (four points) No matter when the deposit was made, all deposits will earn the interest rate that the account is currently paying C. How much will the $2,000 yearly deposits be worth after you have made forty annual deposits? Explain and show your computations. (eight points). d. How much will you have in your retirement account after you make your forty annual deposits [include the original $15,000 deposit from the graduation gifts]? Explain and show your computations. (five points). e. If the account earns 6% compounded monthly, how many months can you make withdrawals equal to $5,000 per month (i.e., you will have no money left in the account after the last monthly payout)? Explain and show your computations. (eight points)