THE FOLLOWING PROBLEMS USE A COMBINATION OF FORMULAS FROM CHAPTER 5 SLIDES:3. James Johnson, a recent graduate of a nationally recognized MPA program wants to be able to travel around the world. James does not have enough money at this time, but believes he can save up enough money to travel around the world in ten years. If he currently has $10,000 to invest and estimates he can earn 7% compounded annually on his investment, how much must James put aside at the end of each of the next ten years in order to accumulate the $100,000 he anticipates will be needed to fulfill his dream?Payment to be made4. Double Circle, Inc. just signed a five-year loan agreement to purchase a piece of property. If the property cost was $160,000, what would be the size of each equal semi-annual payments to amortize the loan at an interest rate of 10%? How much interest will the company be paying over the five-year period?a) Paymentb) Interest paid5. Warren Reed just turned 40. He has decided that he would like to retire when he is 65. He thinks that hewill need $2,000,000 in special retirement accounts at age 65 to maintain his current lifestyle. For the next 15 years he can afford to put $10,000 per year into the account. At age 55 he will need to withdraw $50,000 to purchase membership in the local country club. If his retirement account earns 10% compounded annually, how much will Warren need to deposit into it each year for the last ten years of his work career to attain the $2,000,000 goal?