1)

Peter has decided to put away $11,100 in a bank account today, to save for his retirement.

His deposit is expected to earn an 8% p.a. rate of return, compounded monthly.

How much will Peter have accumulated at the end of 27 years, when he retires?

Answer to two decimal places. Ignore the $ symbol and sign

2)

A company expects a creditor to repay $30,341, 23 years from today.

What is the equivalent value in today's dollars if the company's opportunity cost of capital is 12% p.a. compounded quarterly?

Answer to two decimal places. Ignore the $ symbol and sign.