A real estate investor feels that the cash flow from a property will enable her to pay a lender $15,000 per year, at the end of every year, for 10 years.

a. How much should the lender be willing to loan her if he requires a 9% annual interest rate(annually compounded, assuming the first of the 10 equal payments arrives one year from the date the loan is disbursed)?

b. What if the lender wants the 9% as a nominal annual rate compounded monthly?