Suppose your son was born TODAY. You recently received a $1 million inheritance from your grandmother, and would like to invest a portion of it so that your son and his three year od sister (born on the same date) will each have $100,000 in a college fund on their 20^th birthdays. How much of your inheritance must you deposit today so that the two $100,000 college funds will be fully funded on your children's 20^th birthdays? Assume you will earm 8% annually on all invested funds, compounded semiannually You have just been offered a job in a financial planning firm and have been given the choice of two different salary packages for the first two years of employment. One option is to be paid $75,000 each year (in monthly installments); and the other will pay $60,000 each year (in monthly installments) AND a $30,000 signing bonus today. If you assume the same tax bracket applies to both options, and you are indifferent to the timing of the payments, except for their present value, which package should you select if the relevant interest factor is 12% annually, compounded monthly