1. John Fillmore's lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $500,000. He estimates that the boat he wants will cost $400,000 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 10% (compounded annually) to buy the boat at retirement?
2. On January 15, 2010, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2014, at an estimated cost of $5,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 8% compounded annually. The first deposit was made on July 1, 2010. Dolan should make four annual deposits of ?