Answer the following items:

(a) A couple wishes to save $175,000 over the next 12 years for college education of their only child. What uniform annual amount must they deposit at the end of each year to accomplish their objective assuming an interest rate of 6 percent? (b) How much would you pay for an 10-year bond with a par value of $1,000 and a 5 percent coupon rate? Assume interest is paid annually and the general market interest rate is 6.5 percent.

(c) What will be the value in 12 years of $5,000 invested at the end of each year for the next 12 years? Assume an interest rate of 3 percent. (d) How long will it take for an investment of $2,500 to increase by 130 percent in value? Assume an interest rate of 4 percent. (Carry to two (2) decimals.) (e) An investment costs $180,000 today and promises a single payment of $1.0 million in 15 years. What is the promised rate of return, IRR, on this investments? (Carry to two (2) decimals.)