7. Use the following cash flows to answer questions (a) and (b) below: $50,000 today (T=0), $42,000 in year 1 (T-1), $34,000 in year 2, $26,000 in year 3, $18,000 in year 4, and $10,000 in year 5. The interest rate is 7%. a. What is the most an investor should be willing to pay for an investment with these cash flows (i.e., what is the present value)? b. What would be the value of the cash flows in year 5 if the funds were deposited into an interest-bearing account? c. What would be the value of the cash flows in year 10 if the funds were deposited into an interest-bearing account (assuming no additional cash flows occurred)? 8. 1* Bank & Trust agreed to finance your new RV. You did not have a down payment for it, so they financed the entire purchase price of $75,000. The loan is for 10 years and carries a stated APR of 6%. How much is your monthly payment? Assume interest compounds monthly