6. Rolex Watch Company is considering opening a new retail location in Playa Vista, in three years. Management expects the new location to cost $5,500,000 to open at that time but wants to invest the funds to open the location now at an annual rate of 6%.

a. How much must Rolex Watch Company deposit now to have the desired amount in three years?

b. If the market interest rate starts at 6% for the year and then changes to 8% for the second year, and then drop to 2% in the third year, how much must be invested today to have the startup funds in three years?

c. If Rolex decides to save an additional $50,000 at the end of the first year, an additional $75,000 at the end of the second year, and an additional $80,000 at the end of the third year, how much must the company deposit today to have the required startup funds in three years?