Q5: Your brother has asked you for a loan and has promised to pay you $8,750 at the end of three years. If you normally invest to earn 6.00 percent per year, how much will you be willing to lend to your brother if you view this purely as a financial transaction (i.e., you dont give your brother a special deal)? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

Q6: Karen White wants to accumulate $13,500 by the end of 12 years. If the annual interest rate is 5.70 percent and interest compounds semiannually, how much will she have to invest today to achieve her goal? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)