Question 6 (A) You would like to give your daughter $75,000 towards her college education 17 years from now. How much money must you set aside today for this purpose if you can earn 8 percent on your investments? (B) You just won a national sweepstakes! For your prize, you opted to receive never-ending payments. The first payment will be $12,500 and will be paid one year from today. Every year thereafter, the payments will increase by 3.5 percent annually. What is the present value of your prize at a discount rate of 8 percent? (C) The current value of future cash flows discounted at the appropriate discount rate is term as present value. Intuitively explain the concept of the present value. (D) Your friend is celebrating her 25th birthday today and wants to start saving for her anticipated early retirement at age 55. She wants to be able to withdraw $10,000 from her savings account on each birthday for 10 years following her retirement, the first withdrawal will be in her 56th birthday. She wants to make equal, annual payments on each birthday in a new savings account she will establish for her retirement fund. The account pays 8 per cent interest per year. i) If she starts making these deposits on her 26th birthday and continues to make deposits until she is 55 (the last deposit will be on her 55th birthday), what amount must she deposit annually to be able to make the desired withdrawal on retirement? ii) Suppose your friend has just inherited a large sum of money. Rather than making equal payments, she has decided to make one lump-sum payment on her 26th birthday to cover her retirement needs. What amount would she have to deposit