Your parents decide to start investing in a college savings account for your 8 year-old brother that earns an average interest rate of 4.2% per year. They plan on depositing $5,000 each year into the account, with the expectation that these deposits will grow by 1.5% each year for the next 10 years.

1) What is the present value of this stream of cash flows?

2) How much will they have at the end of the deposit time period?