1-

Mike Carlson will receive $32,000 a year from the end of the third year to the end of the 14^th year (12 payments). The discount rate is 12%. The present value today of this deferred annuity is: Use Appendix B and Appendix D to calculate the answer.

• $169,893

• $139,248

• $152,442

• $157,972

2-

You will deposit $2,000 today. It will grow for 6 years at 10% interest compounded semiannually. You will then withdraw the funds annually over the next 4 years. The annual interest rate is 8%. Your annual withdrawal will be: Use Appendix A and Appendix D to calculate the answer.

• $1,085

• $2,340

• $4,332

• $797