Homework:Chapter 4 Homework Save HW Score: 14.29 % , 2 of 14 pts 7 of 14 (3 complete) Score: 0 of 1 pt P 4-20 (similar to) Question Help Assume that your parents wanted to have $160,000 saved for college by your 18th birthday and they started saving on your first birthday They saved the same amount each year on your birthday and earned 10.5 % per year on their investments a. How much would they have to save each year to reach their goar? b. f they think you will take five years instead of four to graduate and decide to have $200,000 saved just in case, how much would they have to save each year to reach their new g goal? a. How much would they have to save each year to reach their goal? To reach the goal of $160,000, the amount they have to save each year is S (Round to the nearest cent) Homework: Chapter 4 Homework Save HW Score: 14.29 % , 2 of 14 pts Score: 0 of 1 pt 12 of 14 (3 complete) Question Help P 4-35 (similar to) You are thinking of purchasing a house. The house costs $250,000 You have $36,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price The bank is offering a 30 year mortgage that requres annual payments and has an interest rate of 6% per year What will be your annual payment if you sign this mortgage? The arnual payment is (Round to the nearest dolar) Homework:Chapter 4 Homework Save HW Score: 14.29 % , 2 of 14 pts 10 of 14 (3 complete) Score: 0 of 1 pt P 4-29 (similar to) Question Help You work for a pharmaceutical company that has developed a new drug The patent on the drug will last 17 years You expect that the drug's profits will be $3 million in its first year and that this amount will grow at a rate of 6% per year for the next 17 years Once the patent expires, other pharmaceutical companies will be able to produce the same drug and competition will kely drive profits to zero What is the present value of the new drug if the interest rate is 10% per year? The present value of the new drug is $million (Round to three decimal places)