Steve has a son who turned five years old today. Steve wants to give his son a gift on his ${22}^{nd}$

birthday $($seventeen years from today$)$ that will pay for rent on an apartment in London,

England for $5$ years. He expects the rental price to be $$50,000$ for the first year $($due at the end

of the year$)$ and grow at $3\%$ each year afterward. The discount rate is $5\%.[$Total $14$ Points$]$

a$.$ How much money does Steve need to give his son on his ${18}^{th}$ birthday? $[4$ points$]$ PV

b$.$ If Steve wants to invest the same amount of money into an account at the beginning of

each year $($starting today$)$ for the next seventeen years, how much must he invest each

year? The account earns $5\%$ each year. $[4$ points$]$ PMT