P12-55A Solve various time value of money scenarios (Learning Objectives 3 &4) 1. Irving just hit the jackpot in Las Vegas and won $35,000! If he invests it now at a 10% interest rate, how much will it be worth in fifteen years? 2 Trent would like to have $3,500,000 saved by the time he retires in 30 years. How much does he need to invest now at a 14% interest rate to fund his retirement goal? 3. Assume that Ramona accumulates savings of $1.5 million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for twenty years? 4. Jessica plans to invest $4,000 at the end of each year for the next seven years. Assuming a 10% interest rate, what will her investment be worth seven years from now? 5. Assuming a 6% interest rate, how much would Katie have to invest now to be able to withdraw $13,000 at the end of each year for the next nine years? 6. Victor is considering a capital investment that costs $510,000 and will provide the following net cash inflows: Year Net Cash Inflow S304,000 S206,000 S108,000 Using a hurdle rate of 12%, ind the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6