5. What is the present value of $5,000 received: a. Twenty years from today when the interest rate is 8% per year? b. Ten years from today when the interest rate is 3% per year? c. Five years from today when the interest rate is 3% per year? a. Twenty years from today when the interest rate is 8% per year? The present value of $5,000 received 20 years from today when the interest rate is 8% per year is $ . (Round to the nearest dollar.) b. Ten years from today when the interest rate is 3% per year? The present value of $5,000 received 10 years from today when the interest rate is 3% per year is $ . (Round to the nearest dollar.) c. Five years from today when the interest rate is 3% per year? The present value of $5,000 received 5 years from today when the interest rate is 3% per year is $ __________ Round to the nearest dollar.)

6. You have $400,000 to donate to your college. The college's discount rate is 5%. You donate the money today, but you ask the college to delay the scholarship payment so that the first scholarship payment is made 10 years from today. How large will the annual payment be? The annual scholarship payment will be $ __________. (Round to the nearest cent.)

7. You figure that the total cost of college will be $102,000 per year 18 years from today. If your discount rate is 9% compounded annually, what is the present value today of four years of college costs starting 18 years from today? The present value today of four years of college costs starting 18 years from today is $________ nearest dollar.)