1. Tom invests $4,500 today and $2,000 at the end of next year (year 2). What is the total amount in Toms account at the end of year 3 if annual interest is 6%?

$7,479.57

$7,056.20

$5,056.20

$6,890.00

$7,000.00

2. How much must Anna have in her investment account on her 65th birthday so that she can withdraw $30,000 on that birthday and on each of the next 19 birthdays (interest rate is 8%)?

$318,108

$294,540

$340,109

$288,120

$264,540

3. John has just won a lottery jackpot. He will get the money in 26 equal installments of $307,692 each, starting immediately. The Finance Company offers him $2,000,000 cash if he signs the payments over to them. What interest is the Finance Company earning on this offer?

17.9%

15%

7.5%

5.5%

7.8%