1. Robert Golland, a student in the University of Kentucky deposits $1,000 every year (starting one year from today) in his bank account and earns 16% on his deposit balance, how much money will he have at the end of four years, assuming that he will make four $1,000 payments?
$8,207
$5,877
$8,000
$4,000
$5,067
2. Education Plus financial services is offering education savings plan. The plan calls for you to make eight annual payments of $5,000 each, with the first payment occurring today, your child's 10th birthday. Beginning on your child's 18th birthday, the plan will provide $18,000 per year for four years. What return is this investment offering?
12.11%
18.12%
16.69%
9.96%
14.38%