1a) You have to pay $2,000 a month in apartment rent at the end of each of the next 12 months. How much do you need to set aside today to cover these bills, if the monthly interest rate is 4%?

1b) You receive an inheritance from your grandmother in the amount of $4 million. Unfortunately, the inheritance will be paid in 5 equal installments. The first payment is in two years from now. How much is the inheritance really worth if the discount rate is 7%? 10%?