1.

"A bank offers a 30 year annuity, with monthly payments of $2,000 starting 1 month from today. If the annual discount rate is 5%, compounded monthly, how much should this annuity cost today?"

		"$30,744.90 "
		"$40,000.00 "
		"$372,563.23 "
		"$720,000.00 "

2.

"You earned a 14.25% return on an investment last year. Inflation was 1.25% last year. According to the Fisher Equation, what was your real return last year?"

		12.84%
		13.00%
		14.25%
		15.50%

3.

"You wish to get a fully amortizing 20 year fixed rate mortgage with monthly payments for $1,000,000. If the annual interest rate is 4.00%, compounded monthly, what will the monthly mortgage payment be?"

		"$4,774.15 "
		"$6,059.80 "
		"$40,003.27 "
		"$85,149.90 "

4.

"Ann gets a fully amortizing 30 year fixed rate mortgage with monthly payments for $1,000,000. If the annual interest rate is 3.25%, compounded monthly, and Ann must pay 1.75 points in closing costs, what will Ann s true APR be? (make sure your answer is annualized)"

		0.28%
		1.75%
		3.25%
		3.39%