You have decided to start saving up to buy a house. You plan on withdrawing $25,000 at the end of year 4 for a down payment, $18,000 at the end of year 5 and again $18,000 at the end of year 6 for upgrades, and $20,000 at the end of year 7 to add a pool. How much do you need to deposit today into an account with an annual interest rate of 1.25%? Question 1 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices. Option A Option B PE? P=? i = 1.25% 4 4 0 A i = 1.25% $18,000 $18,000 $20,000 $25,000 $18,000 $18,000 $20,000 $25,000 Option C Option D i = 1.25% 1 = 1.25% 4 PE? $18,000 $18,000 $20,000 $25,000 $18,000 $18,000 $20,000 $25,000 Question 1 Part B: Identify the correct Function Notation for this scenario. O P = $25K(P/G,1.25%,4) P= $25K(P/G,1.25%,3) - $7K(P/A,1.25%,2) P = $25K(P/F,1.25%,4) + $18K(P/F,1.25%,5) + $18K(P/F,1.25%,6) + $20K(P/F,1.25%,7) P = $25K(F/P,1.25%,4) + $18K(F/P,1.25%,5) + $18K(F/P,1.25%,6) + $20K(F/P,1.25%,7) Question 1 Part C: Provide the value that needs to be deposited. Enter your answer in the form: 12345.67 Question 1 Part D: Choose the statement that is most correct for your answer to Part C. The value in Part C is what you need to deposit by the end of year 1 into an account. The value in Part C is what you need to deposit into an account with the annual interest rate of 1.25%. The value in Part C is what you need to deposit. The value in Part C is what you need to deposit into an account today, at the annual interest rate of 1.25%