1. Your parents have given you a choice regarding your graduation gift. You can either receive $5,000 in two years when you graduate, or you can wait another three years and receive $7,000.
   1. If you can earn 7% on your money, which do you prefer?
   2. What interest rate makes you indifferent between the two choices? Use a mathematical solutions approach.
2. Forty annual deposits of $2,000 will be made into an account that earns 9% interest compounded annually. If the first deposit is made today, what is the accumulated value in the account immediately after the 40^th deposit?