1. Six years from now, you will be inheriting $13,008. What is this inheritance worth to you today if you can earn 4.1 percent interest, compounded annually? Round your answer to the nearest cent.
2. Elaine has just received an insurance settlement of $25,468. She wants to save this money until her daughter goes to college 3 years from now. If she can earn an average of 7.5 percent, compounded annually, how much interest on interest will she have earned by the time her daughter starts college?Assume she makes no further deposits or withdrawals.