1.Because your mother is about to retire, she wants to buy an annuity that will provide her with $85,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 6.25%. How much would it cost her to buy the annuity today? (Round your answer to 2 decimal places.)

2.A salt mine you inherited will pay you $35,000 per year for 30 years, with the first payment being made today. If you think a fair return on the mine is 8.5%, how much should you ask for it if you decide to sell it? (Round your answer to 2 decimal places.)