1. Bob Smith borrowed $100,000 on January 1, 2015. The interest rate of 10% is compounded semiannually to be repaid January 1, 2025. To repay this Bob wants to start making five equal annual deposits into fund that earns 8% annum on January 1, 2020.

Required: What is the amount of the five annual deposits that Bob needs to make?

2. Utomis Corp. needs $100,000 in five years for their budgeted capital expenditures. How much does Utomis need to deposit today when the interest rate is 10%.