1.

George Jefferson established a trust fund that provides $173,500 in scholarships each year for worthy students. The trust fund earns a 4 percent rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest income is distributed?

$3,061,581

$5,205,000

$4,337,500

$6,940,000

$4,164,000

2.

Your credit card company charges you 1.10 percent per month. What is the annual percentage rate on your account?

10.02 percent

10.90 percent

13.20 percent

9.80 percent

12.83 percent

3.

Mr. Miser loans money at an annual rate of 12 percent. Interest is compounded daily. What is the actual rate Mr. Miser is charging on his loans?

12.61 percent

12.75 percent

12.81 percent

12.37 percent

12.90 percent