Question: 1. Emily Bennett is setting up an annuity for a memorial scholarship. What lump sum does she need to set aside today at 7% annual interest to have the scholarship pay $3,000 annually for 10 years?
2. Kristin Bennett, a nationally recognized philanthropist, set up an ordinary annuity of $1,600 for ten years at 9% annual interest. How much does Bennett have to deposit today to pay the stream of annual payments?