EGR 303 in the college and you know compounding is very important! You put $5,000 per year into the company's 401(k) plan, which averages 8% interest per year. Five years later, you move to another job and start a new 401(k) plan. You never get around to merging the funds in the two plans. If the first plan continued to earn interest at the rate of 8% per year for 40 years after you stopped making contributions, how much is the account worth? (a) Draw a cash-flow diagram for this situation. (b) Can you buy a house that worths $400,000 with this account? Years 2010 2011 2009 2012 $400 $600 $800 $1,000 F = ? Problem 3. [25 points) Use the given chash flow diagram and generate two cash follow diagrams where you can use uniform gradient amount (G) to obtain future equivalent of the payments. [HINTS: Assume $1000 uniform cash outflow and subract it from a gradient cash outflow to get the below cash flow] Calculate the future equivalent at the end of 2012, at 8% per year, of the following series of cash flows in given Figure. [Use a uniform gradient amount (G) in your solution.]