1.

Classify the problem below using the funding categories A to F You do NOT need to solve the problem just classify it. Funding Type A. Lump Sum Funds Lump Sum B. Lump Sum Funds Ordinary Level Annuity C. Lump sum funds delayed level annuity D. Ordinary Level Annuity funds lump sum E. Ordinary Level Annuity funds delayed level annuity F. Delayed Level Annuity funds delayed level annuity

During your retirement you will need $4,000 per month, each month, for 300 months. You plan on retiring 60 months from today. If your investments earn 6% APR (compounded monthly), must you invest each month, starting next month, for 12 months to fully fund your retirement?

Group of answer choices

F

B

C

E

A

D

2.

Classify the problem below using the funding categories A to F You do NOT need to solve the problem just classify it. Funding Type A. Lump Sum Funds Lump Sum B. Lump Sum Funds Ordinary Level Annuity C. Lump sum funds delayed level annuity D. Ordinary Level Annuity funds lump sum E. Ordinary Level Annuity funds delayed level annuity F. Delayed Level Annuity funds delayed level annuity

You plan on attending graduate school for 2 years starting 5 years from now. Each year of graduate school will cost you $25,000. You begin saving for graduate school starting 2 years from now and save for 3 years. How much must you invest each year, starting two years from now, for 3 years such that your investment will grow to just cover the cost of graduate school? Your investments earn 4% APR (compounded annually).

Group of answer choices

D

A

E

C

F

B