a) John Fillmores lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $400,000. He estimates that the boat he wants will cost $300,000 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 8% (compounded annually) to buy the boat at retirement?

b) Refer to the data in BE6-7. Assuming quarterly compounding of amounts invested at 8%, how much of John Fillmores inheritance must be invested to have enough at retirement to buy the boat?