1a) You decided to endow a chair in finance for the Monroe College King Graduate School. The goal of the chair is to provide the chair holder with $125,000 of additional financial support per year forever. If the rate of interest is 4 percent, how much money will you have to give the Monroe College foundation to provide the desired level of support?

1B)You plan to save $2,000 each year for the next four years to pay for a vacation. You invest (and reinvest) the money at the beginning of each year. If you can invest it at 6 percent, how much will you have at the end of four years?