Margaret wants to buy a car when she graduates from Central University four years from now. She believes that she will need $30,000 to buy the car.

Required

a. Calculate how much money Margaret must put into her savings account today to have $30,000 in four years, assuming she can earn 8% compounded annually.

b. Calculate how much money Margaret must put into her savings account today to have $30,000 in four years, assuming she can earn 8% compounded semiannually.