5. You have just received a windiall from an investment you made in a friend's buathetie, Sthe will be parying you 532,301 at the end of this year, 564,602 at the end of next yoar, and $95,903 at thit end af the yoar after that (three years from today). The Interest rate is 4.3. per year; a. What is the present value of your windfali?? b. What is the future value of your windfali in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) b. What is the future value of your windfall in three years (on the date of the last payment)? The future value of your windfall in three years is $ (Round to the nearest doliar.) 6. Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 6%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 6% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)? a. The present value of the cash flow is $ (Round to the nearest cent.) b. The future value of the cash flow is 5 (Round to the nearest cent.) c. The balance of the account after the end of year 1 is S The balance of the account after the end of year 2 is $ The balance of the account after the end of year 3 is $ (Round to the nearest cent.) The answers to parts (b) and (c) are (1) the same. (1) approximately not You want to endow a scholarship that will pay $11,000 per year forever, starting one year from now, If the school's endowment discount rate is 4%, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today? In the first case, the amount you must donate today is (Round to the nearest cent.) How would your answer change if you endow it now, but it makes the first award to a student 10 years from today? This case, the amount you must donate loday is 5 . (Round to the nearest cent.)