Fraser Company will need a new warehouse in eight years. The warehouse will cost $500,000 to build.

Round answers to the nearest dollar.

1.What lump-sum amount should the company invest now to have the $500,000 available at the end of the eight-year period? Assume that the company can invest money at eight percent.

2.What lump-sum amount should the company invest now to have the $500,000 available at the end of the eight-year period? Assume that the company can invest money at thirteen percent.