1) Bob and Jane Loveboat are saving to buy a boat at the end of 5 years. If the boat costs $25,000, and they can earn 8 percent a year on their savings, how much do they need to put aside at the end of every year 1 through 5? Round off your final answer to three digits after the decimal point. State your answer as 'x.xxx'

2)Assuming that the annual interest rate is 7%, how much would you pay to receive $100 every year, growing at 5%, annually, forever? Round off your final answer to the nearest dollar.