1. Alex sister is currently 12 years old. She will be going to college in 6 years. His parents would like to have $100,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4% per year, how much money do his parents need to put into the account today to ensure that they will have $100,000 in 6 years?

2. Alex are planning to buy a car for $50,000. The bank offers him a 5-year loan with equal annual payments and an interest rate of 5% per year. The bank requires that him pays 20% of the purchase price as a down payment. Calculate the annual loan payment?