1. Assume you will receive $43,235.54 six years from now, and that the interest rate will compound annually at 10.2%. What is the present value of the $43,235.54 you will receive six years from now?

2. Jimmy decides to invest $23,000 for five years at an interest rate of 10.6%, which will compound annually. Assuming Jimmy can choose to either reinvest all of his earnings from the investment or decline to invest any of his earnings, what is the difference between simple and compound interests?