Consider the following investment plans. 

• Plan1: will pay zero for the first 4 years, but then it will pay $52,000 per year for the next 3 years. 

• Plan 2: will pay $38,000 per year for the first 3 years and $25,000 in the 4th year. 

All payments are made at year-end. 

Consider the rate of return on these investments is 5% annually.

 How much an investor is willing to pay today for each of these 2 above plans? 

For each plan, how much a person should set aside now (today) to cover these payments?