Total Points: 50 Against each question shown are the points assigned to that question. Solve the following problems and show the work and/or reasons(s) in detail: 1. (5 points) A project is expected to generate the following cash flow stream. The required rate of returns is 9 percent. Required: Calculate the present value of the above cash flow stream Answer: Show Work: 2. (5 points) You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement Answer: Show Work 3. (5 points) After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the EAR. Answer: Show Work: 7. (5 points) APR or stated rate, in each of the following cases: Required: Calculate the APR. Answer: Show Work: Required: Calculate the amount of savings you have in your retirement account to receive this income. a) Assume that the payments start on the day of your retirement. b) Assume that the payments start one year after the retirement. Answer: Show Work: 4. (5 points) For $20,000, you can purchase a five-year annuity that will pay $5000 per year for five years. The payments occur at the end of each year. Required: Calculate the effective annual interest rate implied by this arrangement. Answer: Show Work: 5. (5 points) If you invest $1000 at 11% APR for five years, how much would you have at the end of 5 years? Required: a) Calculate using simple interest. b) Calculate using compound interest. Answer: Show Work: 8. (5 points) You have just won the lottery and will receive 52.5 million in one year. You will receive payments for 25 years, and the payments will increase by 35 percent per year: If the appropriate discount rate is 6 percent what is the present value of your winmings? Require: Calculate the present value. Answier: Show Works 9. (5 points) You just inherited a trist that will pay you $100000 per year in perpetuity. However the first payment will not occur for exactly four more years Assume an 8 percent annual interest rate. Requared Calculate the value of this trust Answer Show Work 10. (5 points) Mr. Cl took a loan of $150.000 at arrate of 7 percent She can pay equal installments 61525000 at the end of each lyear- In how many years she can repay the loan if? Required Calculate the approximate number of years over which she can repay the loan amount Ansiver Show Wors