1. You need $129,200 at the end of 17 years. You know that the best you can do is to make equal payments into an account on which you can earn 9% interest compounded annually. Your first payment is to be made at the end of the first year.

1. What amount must you plan to pay annually to achieve your goal?
2. Instead of making annual payments, you decide to make one lump sum payment today. To achieve your objective of $129,200 at the end of the 17 year period, what should this sum be? (You can still earn 9% interest compounded annually on your account.)