16) Your father has $1 million invested earning an expected return of 1.5%, and he now wants to retire. He wants to withdraw $100.000 at the end of each year, beginning at the end of this year. How many years will it take to exhaust his funds, i.e., run the account down to zero? a. 10.9 years b. 15.7 years c. 17.8 years d. 20.9 years e. 26.7 years 17) You just won the state lottery. The state gives you the choice of $20 million today or a 20-year annuity of $1,1 million, with the first payment coming one year from today. What annual rate of return is built into the annuity? a. .73% b. 93% c. 1.00% d. 1.21% e. 3.15% 18) What's the present value of a 4-year ordinary annuity of $1,000 per year plus an additional $1,500 at the end of year 4 if the interest rate is 2.0%? a. $5,500 b. $5,194 c. $6,288 d. $6,680 e. $7,072 19) What's the present value of a perpetuity that pays $1,000 per month, with the first payment one month from today, if the APR is 6.0%? a. $142,857 b. $166,667 c. $200,000 d. $250,000 $333,333 DO