a.The Smiths have decided to invest in a college fund for their young son. They invested $40,000 in a deferred annuity that will pay their son at the beginning of every month for 4 years, while he goes to college. If the account earns 3.50% compounded monthly and the annuity payments are deferred for 13 years, what will be the size of the monthly payments?

b.Jeffrey purchased an annuity that had an interest rate of 2.75% compounded semi-annually. It provided her with payments of $2,500 at the end of every month for 6 years. If the first withdrawal is to be made in 4 years and 1 month, how much did she pay for it?