Suppose you have a real estate opportunity that requires $100,000 investment today but will pay you $250,000 in 8 years. What interest rate, r, would you need so that the present value of what you get is equal to the present value of what you give up?

a.) 10.135% b) 11.135% c) 12.135% d) 9.135%

two seperate questions... please show work on how you answered each!

Andrew received $20,100 from Aunt Jane today. He is also able to save $10,000 at the end of each year. If he is able to earn 7.25% per year, how long will it take him to reach a goal of $120,000? The period is closest to:

a.) 6.99 years b) 8.54 years c) 6.25 years d) 7.66 years