1. Assume Miami university earns an average rate of return of 6.56 percent on its endowment funds. If a new gift permanently increases annual scholarships by $32,000, what was the amount of the gift? A) $131,432.00 B) $289,824.00 C) $443,726.00 D) $487,804.00 E) $373,716.00

2. April plans to save $40 a week, starting next week, for ten years and earn a rate of return of 4.6 percent, compounded weekly. After the ten years, she will discontinue saving and invest her account at 6.5 percent, compounded annually. How long from now will it be before she has accumulated a total of $40,000? A) 7.1 years B) 6.6 years C) 1.4 years D) 11.2 years E) 15.02 years

3. Emily will receive annual payments of $800 during the next 12 years. What is the present value of these payments if the discount rate is 7 percent? A) $6,669.00 B) $6,973.00 C) $6,953.00 D) $6,354.00 E) $6,087.00

4. What is the effective annual rate of 9.6 percent compounded quarterly? A) 9.15 percent B) 9.95 percent C) 9.72 percent D) 9.35 percent E) 9.71 percent