1. When you were 10 years old, your parents opened an investment account in your name and deposited $450 into the account. The account has earned an average annual rate of return of 4.8 percent. Today, the account is valued at $36,911.22. How old are you today? A) 74.47 years B) 92.98 years C) 93.99 years D) 101.75 years

2. There is a tradeoff between risk and return (i.e., to earn higher returns you generally have to take more risk) because ________. A) investors like risk and return and want more of both B) investors are risk averse, so they will not accept riskier investments unless they offer higher returns C) to earn higher returns you have to make bigger investments and bigger investments are always riskier than smaller ones D) investors care about returns but not about risks

3. In their meeting with their advisor, Mr. and Mrs. O'Rourke concluded that they would need $60,000 per year during their retirement years in order to live comfortably. They will retire 10 years from now and expect a 15-year retirement period. How much should Mr. and Mrs. O'Rourke deposit now in a bank account paying 8 percent to reach financial happiness during retirement? Assume that once they retire, the O'Rourkes will withdraw $60,000 from their retirement account at the end of each year. A) $513,568.72 B) $186,140.94 C) $365,145.83 D) $365,148.72