Question 6: How much would you need to invest today in an investment that pays an annual 8% rate of return if you want to have $12,000 20 years from today? (in other words, what is the present value of $12,000 received 20 years from today?

Question 7: If you put $25 in a savings account each year that pays 1% interest, how much will you have in 10 years? (In other words, what is the future value of a $25 annuity at a rate of 1% for 10 periods?)