Chapter 5 a. Melissa would like to send her parents on a cruise for their 25th wedding anniversary. She has priced the cruise at $25,000 and she has 10 years to accumulate this money. How much must Melissa deposit annually in an account paying 10 percent interest in order to have enough money to send her parentson the cruise? b. What is the rate of return on an investment of $154,090 if the company expects to receive $12,000 per year for the next 30 years? c A beach house now costs $250,000. Inflation is expected to cause this price to increase at 3 percent per year over the next 15 years before Steve and Stacy retire from successful investment banking careers. How large an equal annual end-of-year deposit must be made into an account paying an annual rate of interest of 10 percent in order to buy the beach house upon retirement? d Joe want to leave an amount to the Montana Tech foundation that will fund a $10,000 per year scholarship into perpetuity. The endowment will be given at the end of the tenth year. The rate of interest is expected to be 9 percent in all future periods. How much must Joe deposit at the end of each of the next ten years to fund this scholarship? e. You just had your 25th birthday. You would ke to retire in 40 years at the age of 65. You believe you willife for 25 years after retirement and would ike to withdraw $100,000 per year in retirement starting at the beginning of your first year in retirement You plan to fund this with forty annual contributions into aretirement plan starting at the end of the current year. You believe that 10 percent is an appropriate rate of retum for all years. How much will you need to have accumulated upon retirement at age 65? What is the amount of annual contribution required over the next 40 years to accumulate this amount