Walt is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $13,800; year 2, $11,300; year 3, $8,800; year 4, $6,300; year 5, $3,800; year 6, $0; and year 7, $13,800. Walt believes that he should earn 12 percent compounded annually on this investment.

Required:

a. How much should he pay for this investment? b. How much should he pay if he expects to earn an annual return of 9 percent compounded monthly?

Note: For all requirements, do not round PV factors and round your other intermediate calculations and final answer to the nearest whole dollar amount.