1. Ian would like to save $2,000,000 by the time he retires in 30 years. If he believes that he can achieve a 5% rate of return, how much does he need to deposit each year, starting one year from now, to achieve his goal

Select one:

$12,065

$37,500

$25,298

$30,103

none of the answer is correct

2.

Dr. Stein has just invested $10,000 for his son (age 7). The money will be used for his son's education 10 years from now. He calculates that he will need $19.672 for his son's education by the time the boy goes to school. What rate of return will Dr. Stein need to achieve this goal?

Select one:

2%

9%

8%

7%

10%

none of the above

3.

Mr. Sutton takes a $30,000, 6 year loan with 10% interest. Payments are to be made each 6 months. How much will be the debt of Mr. Sutton at the end of 1st year?

PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES

4.

Bob James is 40 years old and expects to retire in 15 years. Bob thinks that his pension would not be enough to maintain his actual lifestyle, because he spends $30,000 annually and his pension is expected to be $25,000. If Bob receives the pension during 30 years, How much he will deposit today in an account that pays 3% in order to maintain his lifestyle during this period?

USE TIME VALUE TABLES WITH 3 DECIMAL PLACES