1. You plan to fund your individual retirement account (IRA) with the contribution of $6,000 at the beginning of each year for the next 30 years. If the annual interest rate is 5%, how much will he have at the end of the 30th year?

A. $207,900 B. $398,633 C. $418,564 D. none of the above; the correct answer is ____

2. A generous benefactor to the university plans to make a one-time endowment which would provide the school with $15,000 scholarship per year into perpetuity. The rate of interest is expected to be 6% for all future time periods. How large must the endowment be?

A. $ 90,000 B. $150,000 C. $250,000 D. none of the above; the correct answer is _____

3. In order to help you through college, your parents deposited $100,000 into a bank account paying 3% annual interest. You plan to withdraw equal amounts from the account at the end of each of the next four years. What is the maximum amount you can withdraw annually?

A. $24,271 B. $26,119 C. $26,902 D. none of the above; the correct answer is _____