Question $7$

An investment is expected to pay nothing for $5$ years, then will pay $$15$ thousand per year for

$4$ years. If your required rate of return is $5\%,$ what is the maximum you should be willing to

pay for this investment?

It may be very helpful here to draw a timeline!

Question $8$

A client has $$199$ thousand in a bank account, which pays $10\%$ APR compounded monthly.

Since FDIC protection only applies on amounts at or below $$250$ thousand, he wants to know

how long it will take for the account to exceed this value.

Enter answer in months, accurate to two decimal places.