1. At age 65 you will receive an annuity of $1,200 a month, and you expect to live until 85. If you are 28 years old today, how much is that Annuity worth today? Rate = 7.8%

2. You want to retire and believe you will need $3,300 a month to live on for the next 25 years. How much will you need to invest today to have the $3,300 per month? Rate = 6.8%