6. If Charles can earn a 3.75% annual rate of return on amounts remaining in his account from year to year, how much must he have on deposit today to make the series of year-end withdrawals described in each of the situations listed below? (Another way to word this problem is: what is the present value of each of the following cash flow streams, with year-end cash flows and a 3.75% annual discount rate? Another way is to ask how large a loan a borrower could repay with the payments described?)

a) $500inyear1,$900inyear2,$400inyear3,$800inyear4,$100inyear5,$300inyear6 b) $500 in each of years 1 through 6