tions where applicable. Answers which are not supported by all of your calcula STRUCTIONS-Show tions will not be accepted for grading An individual wants to have $2000 at the end of three yea have to invest at a 10% interest rate, compounded annually, in order to after paying a $250 early withdraw fee (8 points) rs. How much would the individual obtain a net of $2000 1. at the end of the third year? Draw a cash flow diagram. Mr. Werner is planning a 20-year retirement. He wants to withdraw $6000 at the end of the first year, and then increase the withdraws by $800 each year to offset inflation. How much money should he have in his savings account at the start of retirement, if the bank pays 9% interest per year, compounded annually? (8 points) 2. For what value of X are the following two cash flows equivalent at a 10% interest rate? (8 p End of Year23 0 4 Flow A, $ -10,000 5000 5000 5000 Flow BS 3500 4500 5500 6500