1. A corporation issues a debt instrument such as a bond that promises to pay you annually $50 for four years and $1,000 after four years. What is the maximum amount you would pay for this debt instrument if you wanted to earn 9 percent? Round your answer to the nearest dollar.

2. You are offered an annuity that will pay $8,000 a year for twelve years (that is, twelve payments), but the payments start after five years have elapsed. If you want to earn 7 percent on your funds, what is the maximum you should pay for this annuity? Round your answer to the nearest dollar.