(a) You plan to invest $2,500 per month for the next 20 years, and savings are made at the end of each month. If the interest rate is 6% per year compounded monthly for the first 10 years, and 8% per year compounded monthly thereafter, how much will you have in 20 years?

(b) Curtis is going to receive a 30 year annuity of $ 20,000 per year, with the first payment beginning one year from now (i.e., at t=1). Marcus is going to receive a perpetuity of $ 20,000 per year, also beginning at t=1. If the appropriate interest rate is 8% per year, compounded annually, how much more in Marcus’s cash flow worth today?