1. Calculating Annuity Values. You want to have $60,000 in your savings account 12 years from now, and youre prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.4 percent interest, what amount must you deposit each year?
2. Calculating Annuity Values. Your company will generate $47,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.1 percent, what is the present value of the savings?