1) Your company just sold a product with the following payment plan: $50,000 today, $25,000 next year, and $10,000 the following year. If your firm places the payments into an account earning (your-5%) per year, how much money will be in the account after collecting the last payment? Answer: ____________

2) Choice 1 is to invest $5,000 per year for 7 years and leave in the account untouched for 40 years. Choice 2 is to invest $5,000 per year for 39 years. Each account earns an average of (your-5%) per year. How much is the future value for each choice ?

Choice 1: ______________________

Choice 2: ______________________

Please write down the calculation procedure.thx