-Assume that you deposit $50,000 today in a bank account offering an interest rate of 7.5% per year, compounded annually. how much interest on interest will you have earned after 3 years?

- you have just been given a certificate that entitles its holder to receive $1,200 payment every two years forever. the first 1,200 payment will be made one year from today, the second 1,200 payment will be made three years from today, and so on. If the current interest rate is 10% per year compounded annually, what is the time t=0 present value of this certificate?