1) Trey just joined a new gym and signed up for a one-year membership. Membership fees can be paid in 12 monthly payments of S60, due at the beginning of each month or in one payment today.
If the appropriate interest rate is 12%, how much should he pay today for the annual membership?
2) Kristine doesn't have enough money in her account right now. She needs to make additional contributions at the end of each of the next five years to be able to pay for the repairs.
Her account currently has $3500, which, along with her additional contributions is expected to continue earning 8% annual interest. If she makes equal contributions each year, how large must each contribution be for Kristine to have $8,000 after five years?