1. How much do you need to have in your bank account today (i.e. at t=0) in order to pay your rent of $12'000 at the end of each of the next four years (i.e at t=1, t=2, t=3 and t=4) if you can earn an interest of 4% per annum?

2. A company makes annual investments of $10'000 per year for a period of 3 years beginning next year (i.e at t =1 to t =3) to develop a plot for future construction. Find the value of the plot after 3 years (i.e. at t=3) if the investments earn an annual return of 3%.