OPEN QUESTIONS SECTION (60 Points Total) Please answer the following question. You have to show you will come 1. Time Value of Money (30 Points). Saratog for 3 different retirement plans described below PLAN I: Save $300) Vry week for you with the cash Dos y ok with the test payment made 1 week from today period 1 Wone wick from today! PLAN 2: Save 88,000 one year from today and 1.000 perymat (starting on your trotowy) for a total of 11 years (last payment made in period 11). PLAN 3: Save $15000 every 6 months (with the first paymetit made today for 10 years last part made in year 10) If the APR is 12% per year, answer the following questions (a) 6 Points. What is the present value of the cash flow tram described in PLAN 17 (b) 6 Points. What is the future value of the cash flow stream described in PLAN 1 in 3 years? (C) 6 Points. What is the present value of the cash flow stream described in PLAN 27 (d) 6 Points. What is the future value of the cash flow stream described in PLAN 2 in 12 yer 2. Loan Amortization (15 Points). Natalie wants to buy a house worth $400.000. To do so, she takes out a mortgage loan equal to the price of the house. The mortgage has to be repaistet 20 years and make semiannual (every 6 months) payments with an APR of 10%. Given this information, answer the following (A) 5 points. Draw the timeline that describes all cash flows (paid and received) throughout the duration of the loan. On the timeline, you must also indicate what is the last period/payment! Denote the period cash flow payment as (b) 5 points. How can Natalie calculate what is the payment. C she has to make on that loan? (Write down the formula together with all information necessary to calculate the payment. The final expression should have C on the left side and all other information on the right side of the equation) (e) 5 points. After 17 years of paying off the mortgage, Natalie has accumulated enough savings to pay off the remainder of her loan. How much does Natalie still owe on her mortgage 17 years after she first started making payments? The payment C is $23,311.25 (NOTE: You only need to write down the formula that would calculate the value of the remainder of the loan
