1.) Hector and Yolanda want to establish a fund for theirgrandson's college education. What lump sum must they deposit at an 8.5% annual interestrate, compounded annually in order to have $40,000 in the fund at the end of 10 years? They need to deposit $__ now. Round up to next dollar.

2.) Jacksons property tax is $693.79 and is due April 5. He does not pay until July 30. The county adds a penalty of 9.9% simple interest on unpaid tax. Find the penalty Jackson will pay. (Assume there are 365 days in ayear.) Jacks penalty will be $__. Round to the nearest cent.