1. Julie Cowieson's grandmother gave her $10,000.Julie wants to buy a car in three years that she expects will cost about $25,000.If she earns 1.5% p.a. in her Tax Free Savings Account, how much more will she need to borrow to buy the car?
2. Isabelle Salehoun won a lottery!!!She has a choice of two ways to get paid her winnings:

Option a: $1 million today, or

Option b: $40,000 end of every year for life.An insurance company guarantees the payments.

If she expects to earn 3.8% on her investment of the $1 million and her average life expectancy is 60 years from today, which payment method is worth more?