Q 1.

What is the present value of a security that will pay $37,000 in 20 years if securities of equal risk pay 9% annually? Do not round intermediate calculations. Round your answer to the nearest cent.

Q 2.

Your parents will retire in 21 years. They currently have $330,000 saved, and they think they will need $1,300,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.