3)You plan to make 25 annual deposits into your savings account. The first deposit is $500 and the deposits increase by 3% thereafter. Interest rate is 5%.

a)What is the size of the 25^th deposit? (10 marks)

b)What will be the total amount (the sum) deposited? (10 marks)

4) A tract of land is leased in perpetuity at $1,250 due at the beginning of each month. If money is worth 7.5% compounded monthly, what is the present value of the lease? (10 marks)