1.

What is the PV of the following stream of cash flows assuming an interest rate of 5.0%?

Years: 0 1 2 3 | | | | $0 $100 $213 -$125

2.

Your Uncle has just retired and has investments of $375,000. He expects to live for another 25 years and also expects to earn 7% annually on his invested funds. How much can he withdraw each year and not run out of funds until the 25th year (i.e. in year 25 his balance will be zero) if he makes the first withdrawal starting today?