Can someone please help me with these two financial questions?

I have two financial questions that I need help in?


Ok, I tried these two problems and I am lost. I tried like 10 times and still nothing so if anyone can please help me on these two problems, I will appreciate it. Explain how you got your answer as well so I can understand


1) Marie needs $26,000 as a down payment for a house 4 years from now. She earns 5.25 percent on her savings. Marie can either deposit one lump sum today for this purpose or she can wait a year and deposit a lump sum. How much additional money must Marie deposit if she waits for one year rather than making the deposit today?


A)$1,112.36


B)$911.13


C)$1,348.03


D)$878.98


E)$1,420.18





2)Swenson %26amp; Swenson just decided to save $2,200 a month for the next 6 years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 5.5 percent interest compounded monthly. They deposit the first $2,200 today. If the company had wanted to deposit an equivalent lump sum today|||The logic from the previous posters are correct with the exception that the problem doesn't specifically say that you are to compound monthly, so in this case assume one year. Your answer should be A - $1,112.36.





Your second problem appears to be cut off, you may want to repost.|||Actually, i think i see where they are getting at, but i could be wrong.





They gave you the future value which is $26,000. (The amount she neeeds)





They gave you the rate of return: 5.25%





They gave you N: which is 4 years multiplied by 12 months= 48





Payment is 0 since she does not make additional deposits.





So:


FV: $26,000


N: 48


I/Y: 5.25


PMt: 0


PV: ?





I did the calculation and the PV is $21,084.85. If she waited a year to deposit the money, she would need to deposit $22,218.83 in order to get the $26K that she needs.





So, $22218.83-$21084.85= $1,133.98





This doesnt match the first answer, but it is close.





I hope i helped at least with some logic. :)|||BLU is correct on the first question. I came up with same dollar total.





For question two, (using the same formula logic as question 1) you find the total after 6 years for the first scenario, which is 188,019.32. Then just back calculate back on a lump sum payment for scenario 2, which would be 135,273.50.





Hope this helps.