Question 4 Not yet answered Fang has just won $100,000 in a lottery on her 50th birthday. She wants to invest it in a retirement product that will give her: * A lump sum X on her 65th birthday, that she hopes to use to pay for a new car and a world cruise. * An annual annuity of $20,000 per year for 5 years, the first payment on her 66th birthday. i. Using an interest rate of 4% effective pa, what is the Equation of Value for this series of payments? Marked out of 5 Flag question ii. If the interest rate increases to 6%, would you expect X will need to be larger or smaller than when the rate is 4%? Explain your reasoning. Marks: 3+2 Paragraph : Path:p