1) Fred received an inheritance of $45,000 a year when he was 12 years old. However, this was to be inverted and allowed to accumulate at 7% effective until he reaches the age of 21. What will be its amount when he reaches the age of 21?
2) Find the present value of $95,000 due in
a. 120 days
b. 5 years using 5% simple interest.