1. Imprudential, Inc., has an unfunded pension liability of $550 million that must be paid in 19 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.5 percent, what is the present value of this liability?
2. You expect to receive $7,000 at graduation in two years. You plan on investing it at 9 percent until you have $90,000. How long will you wait from now? (Do not round your intermediate calculations.)