Each year for the next 22 years (years 1 to 22) you will deposit $X dollars in your retirement account. When you retire you want to make 20 annual withdrawals (Your first withdrawal will be at time 23). The first withdrawal is for $47,000, and each withdrawal after will increase by 1.5%. If the interest rate on your retirement account is 7.2%, how much is $X? O $11.134.39 $118,731.96 $548,091,32 $10,912.70 Investment "X" and Investment "Y" have the following stream of cash flows (in $ millions), which investment has a lower present value, assuming the interest rate is positive and the same for both investments? Year Y 0 0 0 1 2. 3 4. 20 11 10 0 0 20 11 10 Investment X We need to know the Interest rate to make a comparison Investment X and Investment have the same present value, since the total sum of the cash flows is the same for both Investment Y. Suppose your best friend opens a savings account today (time O) so that starting 6 years from now (in year 6) she can withdraw $150 and then, every year after into perpetuity, she can increase the amount withdrawn by 2.50% with respect to the prior year. If the interest rate is 5.00%, how much does Your best friend has to deposit today (year 0) so she can keep this schedule of withdrawals? $4.701.16 $2,238.65 $2,132.04 55,303.13 Suppose you win a big prize in the lottery. The prize is a sequence of annual payments where you receive $4.00 million at year and then, every year after, the annual payment increases by 1.00% until year 5 (there are a total of 6 annual payments). What is the present value in millions) of this prize at 5.00% annual interest rate? Suppose you plan to retire in 29 years. Today, your retirement account has a balance of $200,000. If you can earn 3% per year in your retirement account, how much more do you need to deposit now (year ) so that you can have $3 million when your retire? $1,273,039.09 $1,073,039.09 $1,473,039.09 $1,191,084.18