Part 1

A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born to have $42,000 when the child reaches the age of 18? Assume the money earns 8% interest compounded quarterly. (Round your answer to two decimal places.)

Part 2

You deposit $8.200 in a 2-year certificate of deposit (CD) earning 2.4% annual interest compounded daily. At the end of the 2 years, you reinvest the compound amount plus an additional $8,200 in another 2-year CD. The annual interest rate on the second CD is 2.7%, compounded daily. What is the compound amount when the second CD matures? (Assume all years have 365 days. Round your answer to the nearest cent.)