1. What is the value of an account ten years from now, which has an opening balance of $500, to which you contribute $50 per month, and which grows at a 7.5% annualized rate?
2. Given the answer in Q1, above, if you reinvest the amount into an annuity paid out over four years, how much will your payment be, assuming it carries a guaranteed 4% annualized interest rate, and that it is paid at the beginning of each period? Select the CLOSEST answer.
a. $175.00
b. $200.00
c. $225.00
d. $250.00