STC 4G 10:01 AM @ O 81%) ASSINMENT 2-3311- Fall- altern... PRINCE MOHAMMAD BIN FAHD UNIVERSITY 1. Suppose you would like to have $25,000 saved 6 years from now to pay towards your down payment on a new house. If you are going to make equal annual end- of-year payments to an investment account that pays 7 per cent, how big do these annual payments need to be? 2. What is the present value of an annuity of $27 received at the beginning of cach year for the next six years? The first payment will be received today, and the discount rate is 10% 3 What is the present value of S150 received at the beginning of cach year for 16 years? The first payment is received today. Use a discount rate of 9% 4. What is the future value of $500 a year for 10 years compounded annually at 5% 5. What is the present value of $280 a year for 7 years discounted back to the present at656 pg. 1