Solve the following 1- Assume that you are planning to purchase a car in 5 years. If you deposit $2,000 each year into your account which will earn an average of 5% per year, with the first payment today, how much will you have after 5 years? O a) $11,051.26 b) $11,603.83 OC) $20.000 34 O d) $150,000 O e) None of the above 2- What initial investment is needed to have a saving of $2000 after 3 years given an interest rate of 7% per year? a) $5,050.19 Ob) $1,487.72 O ) $1,587.7 d) $1,632.60 e) None of the above 3- How long does it take to save $70,000 if you deposit $8,000 end of each year in an account paying 8% annual interest rate? O a) 6.89 years O b) 8.46 years O c) 11.4 years O d) 9.52 years e) None of the above with 4- Suppose that you are interested in a project A that will provide you with equal end of year cash flows of $3,200 annually for 13 years. The cost of purchasing equipment necessary for this project is $23,000. What is the rate of return of this project? a) 1196 O b) 7.8% OC)9.39 O d) 9.779 e) None of the above . 5- If you are about to choose between project A in the above problem and another equally risky project which will give a yearly return of 12%. Which project would you choose? Note that both projects A and B are mutually exclusive. a) Project A Ob) Project B c) Both projects d) Neither A norB A e) Missing Information