You have been saving and investing in two separate retirement accounts over the past 15 years. You currently have accumulated $355,000 in one account and $623,000 in the other account. Today, you will combine the two accounts into one, which will earn 6.25% per year, now and in the future. Beginning one year ffom now (end of year 1) and continuing for 25 years, you plan to withdraw an equal annual amount from this new account - each amount being withdrawn at the end of each year for 25 years. How much will you be able to withdraw at the end of each year? Question 17 (7 points) Main Street Bank has granted you a seven-year loan for $50,000. You must repay the loan by making monthly payments, at the end of each month. If your monthly payments are $730.43, what is the rate of interest that Main Street Bank is charging you (Calculate the rate taking into account the fact that you are making monthly payments, but state your final answer (the rate) on an annual basis as an APR)? Paragraph BIU - Question 18 (8 points) Assume you borrow $15,000 today at an interest rate of 7% per year. The loan is to be repaid in 5 equal end-of-year payments. In the third year, (a) how much will you pay in interest (the dollar amount of interest in year 3)? (b) how much will you pay. towards the principal amount you borrowed? and (c) what will be the balance owed on the loan after that third annual payment is made? Paragraph ch ( o E 13 ASUS Quc LIUI 1710 POILS) You are planning your retirement in 10 years (10 years from today). Answer parts (a) - (b) below. Be sure to label which answer is for part (a) and which is for part (b). a. You currently (t=0) have $120,000 in a bond account, and you plan to add $5,000 per year at the end of each of the next 10 years to the account. If the bond account earns a return of 7.0 percent per year over the next 10 years, how much will you have in the bond account when you retire? b. You also currently (t=0) have $500,000 in a stock account. If the stock account earns a return of 10.5 percent per year over the next 10 years, how much will you have in the stock account when you retire? [You will not be making any additional deposits to this account during this ten year period.] 10 Paragraph o . Question 20 (9 points) You are planning to retire 25 years from today. You want to be able to withdraw $60,000 per year for 20 years of retirement, with each withdrawal being taken at the beginning of each year. You have already accumulated savings of $90,000 as of today (t=0). You will leave that $90,000 invested for the next 25 years and allow it to grow. How much additional money do you need to save each year (in equal annual amounts) for the next 25 years, to exactly fund the desired retirement withdrawals. All new savings deposits will occur at the end of each year, and you will earn 6.2% per year during the entire savings and withdrawal time on all of your funds. Paragraph BIU