A Company is considering the purchase of a new machine that will last 8 years and cost $ 90,000 the first year, decreasing by $ 1,000 each year to $ 2,000 the eighth year. Determine how much money the company should set aside to pay for this machine:
1. If the interest rate is 4% per year, compounded annually.
2. If the interest rate is 7% per year, compounded annually.