9:30 Not yet answered Marked out of 35.00 Flag question myportal.aum.edu.kw 16 17 L (35 points) The following cash flow

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9 30 Not Yet Answered Marked Out Of 35 00 Flag Question Myportal Aum Edu Kw 16 17 L 35 Points The Following Cash Flow 1 (32.49 KiB) Viewed 10 times

9:30 Not yet answered Marked out of 35.00 Flag question myportal.aum.edu.kw 16 17 L (35 points) The following cash flow diagram indicates the yearly payments you will make in the future. Assume that the interest rate is 12% per year. 2400 2200 2000 1800 5G Time left 0:59:35 18 19 20 21 a) (15 pts.) What is the present value (at time 0) of the payments above? b) (10 pts.) Assume that the present value (at time 0) of the payments above is $8400. What amount should you save to cover these future payments for the first 19 months if you expect your parents to deposit into your account $400 at the beginning? c) (10 points) Explain how your answers to (a) and (b) will change if the interest rate increases. Write your comments in your words.