You are planning for your childs education, and estimate that it will cost $52,500 in eight years. If you can earn 3.84% compounded annually, how much do you need to invest today to pay for this?

1. $38,837

2. $38,467

3. $35,794

4. $32,194

You just purchased a twelve year annuity. This investment earns 5.67% interest compounded annually and will pay you $28,000 in one year. Calculate the present value of this investment assuming the payments grow by 2.3% per year.

1. $159,122

2. $248,168

3. $267,722

4. $282,902