1.An insurance company plans to sell annuities to investors. Based on actuarial calculations, an investor has a 20-year life span, and she wants a $50,000-per-year annuity, payable at the end of each year. If the insurance company uses a 5% assumed investment rate, how much should the annuity cost?

2.In planning for retirement, an investor decides she will save $5,000 every year for 25 years. At a 10% return on her investment, how much money will she have at the end of 25 years?