I. Find the present value of $5000 five years from now if the annual interest rate is 7.2% compounded quarterly. (Draw a time line and use both the formula and financial calculator methods). (8pts) Erin wants own a house in 10 years. She has $4,000 to invest, but will need a down payment of $10,000 at that time. What annual nominal interest rate will she have to earn on her money if interest is compounded quarterly? (6pt) 2. You see a used sporty car that you would like to own. It costs $9,000 and you would pay 7.2% interest, compounded monthly and finance for 3 years. (13pts) A. What is the periodic interest rate? (2pts) 3. B. What is the effective annual rate of interest on this loan? (2pts) C. How much would your monthly payment be? (3pts) D. How much interest did you pay with the first payment? (2pts) E. How much would your loan balance after the first payment? (2pts) F. After the 10th payment, what will be the new loan balance if you win the lottery and want to repay the loan at that time? (2pts)