a. An agent wants to sell you an annuity for $3,000. If you buy it, you will receive $400 at the end of each of the next ten years. If your required annual return on investments of this risk is 11%, should you buy it?

b. You want to have $60,000 available for a hunting cabin that you intend to purchase 15 years from now. What equal amount must you save each year to have this amount if you expect to earn a 12% annual return on your investment?