8. When they are first borm, Grandma gives every grandchild a $2,500 savings bond that matures in eighteen years. What is the present value of each of these savings bonds if the current discount rate is 4% ? a. Seth turned sixteen years old today. b. Shawn turned thirteen years old today. c. Sherry turned nine years old today. d. Sheila turned four years old today. e. Shane was just born. (10 points) 9. Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out $250,000 on your eighty-fifth birthday. You must buy the policy on your sixty-fifth birthday. The insurance company can earn 7% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy? (5 points) 10. Jack and Jill are saving for a rainy day and decide to put $50 away in their local bank every year for the next twenty-five years. The local Up-the-Hill Bank will pay them 7% on their account. a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of twenty-five years? b. Unfortunately, Jack had an accident in which he sustained head injuries after only ten years of savings. The medical bill has come to $700. Is there enough in the rainy-day fund to cover it? ( 10 points)