1)Bill and Cathy will be retiring in fifteen years and would like to buy an Italian Villa, Which is selling for $500, 000 today. Italian villas are expected to appreciate at the rate of 6 % per year. Bill and Cathy want to make s15 equal annual payments to into an accounting, starting one year from today, so that there will be enough cash to purchase the villa in fifteen years.

a)How much will the villa cost in fifteen years?

b)How much Bill and Cathy deposit into the account every year if the account earns 10%