1. Cherry has won the Georgia lottery. She has the option of taking $1.1 million in cash or receiving annual payments at the beginning of each year for 20 years. If the lottery estimates it will earn7% on the balance of the account over 20 years, how much will her payments be?
2. Kenny wants to save $50,000 for an initial investment toward the purchase of a home in 5 years. What must he save at the beginning of each quarter if he can earn 9% compounded quarterly?