1.

Lisa started to put away $4000 into her traditional IRA at age 22 until age 30. By age 30 she stopped contributing to the plan. If her average rate is 8% rate of return, how much will she have in her retirement fun at age 60?

Place answer in the box below and use 2 decimals.

2. Sandra wants to deposit $80 each year for her son. If she places it in an investment account that averages a 2% annual return, what amount will be in the account in 15 years?

		A. 1276.88
		B. 1,433.86
		C. 1,383.47
		D. 1,587.97

3.

You plan on saving $10,000 a year (as a regular annuity) for the next 30 years. You will then make equal withdrawals for each of the next 25 years (also a regular annuity). If the interest rate is 10% over the first 30 years but only 8% for the remaining 25 years, what will be the amount of each withdrawal?

Place answer in the box below and use 2 decimals.

4. If the nominal interest rate is 7% but domestic inflation is 4%, then the real interest rate is:

		A. 2%
		B. 3%
		C. 4%
		D. 5%