An investment in a real estate venture will provide returns at the end of the next four years as follows: year 1, $6,700; year 2, $8,700; year 3, $10,700; and year 4, $13,700. An investor wants to earn a 12 percent return compounded annually on her investment.

Required:

a. How much should she pay for the investment? b. How much should she pay for the investment if interest is compounded monthly?