1. A Freeze dryer is expected to cost $190.000 two years from now and another $120,000 four years from now. If Astra Zeneca wants to set aside enough money now to cover these costs, how much must be invested at an interest rate of 8% per year compounded quarterly?
2. FedEx inc. needs $180000 immediately as a down payment on a new Office. Suppose FedEx management can borrow this money from Chase Banks. FedEx will be required to repay the loan in equal payments made every six months over the next 12 years. The annual interest rate being charged is 10 % per year compounded semi-annually. What is the amount of each payment?