1. If you wish to accumulate $240,000 in the child's college fund after 18 years, and can invest at a 6.5% annual rate, how much must you invest at the end of each year if the first deposit is made at the end of the first year? Round to two decimal places.
2. You are ready to retire. A glance at your 401(k) statement indicates that you have $950,000. If the funds remain in an account earning 8.5%, how much could you withdraw at the beginning of each year for the next 25 years? Round to two decimal places.