1. Finance is Great Co. wants to sell you an annuity. It will pay you $710 per quarter for 20 years. You want to earn at least a5.6 percent return each year. What is the most you are willing to pay today as one large payment to buy this annuity?
2. Hillary is going to contribute $250 on the first of each month, starting today, to her retirement account. Her employer will contribute by adding $125 to the amount Hillary saves. If the two of them continue to do this and she can earn a monthly interest rate of .5 percent in her retirement account, how much will she have 25 years from today?