Andre has $150,000 now, and he wishes to save it aside for his daughter's higher education in five years. He decided to invest in a financial instrument that pays him a return of 12.3% annually.

a) How much money will he save after 5 years?

b) Andre also needs $200,000 in seven years for the down payment on a mortgage. If he starts to make a lump sum investment today and can earn 10.5% annually, how much does he need to put in his initial investment?