1) A beach house in southern Turkey now costs $350,000. Inflation is expected to cause this price to increase at 5 percent per year over the next 5 years before Ali retires from a successful career in business. How large an equal annual end-of-year deposit must be made into an account paying an annual rate of interest of 13 percent in order to buy the beach house upon retirement?

2)James plans to fund his individual retirement account, beginning today, with 4 annual deposits of $2,000, which he will continue for the next 4 years. If he can earn an annual compound rate of 8 percent on his deposits, how much will the amount be in the account upon retirement?

Now consider the case that James pays to his retirement account the same amount at the end of each year. Now how much will the amount be in the account upon retirement?