1. What is the present value of a $1200 perpetuity at discount rate of 6%? A $10,000 B. $18,000 C. $20,000 D. $50,000 2. What is the EFF% of 19.8% APR with monthly compounding? (Round to the nearest 0.01%) A. 19.91% B. 20.11% C. 20.98% D. 21.70% E. 23.14% 3. A private foundation is a nonprofit organization that is usually created via a single donation from an individual or a business. Usually, a private foundation generates income by investing the donation and then disburse the bulk of its investment income each year to desired charitable activities. Consider a private foundation that has just been created with a donation of $25.000.000. The foundation invests the donation and earns an annual return 6.5% per year on it. The foundation will withdraw $1,500,000 per year at the end of each year to support a few charities. When will the foundation run out of money? A After 17 years B. After 27 years C. After 37 years D. It will not run out of money