1. I want to retire in 20 years, and I want to have an annuity of $100,000 a year for 10 years after retirement. I want to receive the first annuity payment at the end of the 20th year. How much do I need to deposit today in an investment account providing an 8% interest rate in order to afford this retirement annuity? (pick closest) A. $156,000 B. $168,000 C. $725,000 D. $671,000

2. Which ones of the following statements are TRUE? I. Everything else equal, the lower the interest rate the higher the value of a perpetuity

II. Among their functions, financial markets provide pricing information

III. Stock options can be used to mitigate agency problems A. I and II only

B. I and III only

C. II and III only

D. I, II, and III