1/GroRight Inc. is building a new warehouse facility at a cost of $12.4 million. The CEO of the firm is quite conservative and will only go ahead with this project once the company has sufficient funds to pay cash for the half of the project's costs. Management feels that they can save $200,000 a month for this purpose. The firm earns 7% compounded monthly on the funds it saves. How long does the company have to wait before building the new warehouse?

2/Your daughter just turned 4 years old. You anticipate she will start University when she turns 18. You would like to have funds in a registered education savings plan (RESP) to fund her education at that time. You anticipate she will spend 6 years in university, and it will cost $20,000 per year. She will need the $20,000 at the start of each school year. When she graduates (debt free) you would also like her to have $40,000 for a down payment on a condo or to travel.If the account promises to pay a fixed interest rate (APR) of 6% per year with monthly compounding, how much money do you have to deposit at the end of each quarter until your daughter starts university to ensure you will have enough to fund her education?