**RESPOND TO BOTH QUESTIONS***

6. You have $400,000 to donate to your college. The college's discount rate is 5%. You donate the money today, but you ask the college to delay the scholarship payment so that the first scholarship payment is made 10 years from today. How large will the annual payment be? The annual scholarship payment will be $ ______________. (Round to the nearest cent.)

7. You figure that the total cost of college will be $102,000 per year 18 years from today. If your discount rate is 9% compounded annually, what is the present value today of four years of college costs starting 18 years from today? The present value today of four years of college costs starting 18 years from today is $ __________ Round to the nearest dollar.)