QII. PROBLEM SOLVING: Show the complete solution by showing your cash ow diagram before answering the problem. 1. Suppose that demand is given by the equation QD=500 50P, where QD is quantity demanded, and P is the price of the good. Supply is described by the equation Qs= 50 + 25P where 03 is quantity supplied. What is the equilibrium price and quantity? ( 15 marks) 2. A 21-year old inherits BD100,000 from a distant relative who has deceased. She decides to spend some and invest the rest immediately in order to retire at 65 with a BD1 000 000 savings account. At 8% interest compounded annually, how much must be invested? ( 20 marks) 3. How much do you need to deposit today (P) to withdraw BD25,000 at n =1, BD3,000 at n = 2, and BD5,000 at n =4, if your account earns 10% annual interest? ( 15 marks) 4. Suppose you make an annual contribution of BD100 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%Iyear. What will it be worth immediately after the last deposit? You may also set up spreadsheet solution ( 20| marks)