Dean is planning for his retirement, so he is setting up a payout annuity with his bank. He wishes to receive a payout of $1,000 per month for 30 years.

a) How much money must be deposited if his money earns 7% interest compounded monthly?

b) Dean wants to use an ordinary annuity to save for his payout annuity. How large of a monthly payment he must make if the ordinary annuity has the same interest rate and lasts for 35 years?