1. The equivalent amount of money that can be spent seven years from now in lieu of spending $50,000 now at an interest rate 18% per year is closest to:
a. $15,700
b. $159,300
c. $199,300
d. $259,100
2. At an interest rate of 8% per year, the present worth in year 0 of a lease that requires a payment of $9,000 now and amounts increasing by 8% per year through year 7 is closest to:
a. $60,533
b. $65,376
c. $72,000
d. $69,328