1. XYZ Real Estate Company estimates the net income on a property to be $100,000 for the next year and expected to increase at 5% annually indefinitely. What is the minimum acceptable rental fee for the property (fixed) for a 5 year lease term. Use a discount rate of 12%

2. How much be set aside today in order to accumulate a pension fund worth $5,000,000 after forty years. Assume an interest rate of 15% compounded continually.