Assumptions: Always assume that all cash flows occur at the end of the period. Unless otherwise specified, assume bonds make semi-annual coupon payments and have S1,000 par value. Unless otherwise specified, assume all interest rates provided are annual percentage rates (APRs) Herman receives an annuity that pays him $10,000 per year for 12 years. Herman hopes to purchase a S250,000 sports car with the proceeds from investing the annuity payments at the end of the 12 year period. What annual interest rate does Herman need to carn to afford his purchase? 2. Nellie just retired with a $1 million retirement fund. If she earns 3% on the balance of the fund and removes $60,000 per year, how long will the money in her fund last before it reaches a zero balance? Bradley is looking to purchase a consol bond (perpetuity) from the British Government. The bond pays $100 per year and is currently selling at S2,250. What is the assumed annual cost of capital of this bond? 3. 4. slim made a single deposit of $5,000 in an account that pays 7.2% in 2013, What equal-sized annual withdrawals can Slim make from the account if the first withdrawal occurs in 2018 and the last occurs in 2023