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18. How much would you be willing to pay (rounded to the nearest dollar) for a 20-year annuity due if the payments are $4,500 per

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18. How much would you be willing to pay (rounded to the nearest dollar) for a 20-year annuity due if the payments are $4,500 per year and you want to earn a rate of return equal to 5.5% per year? A) S84,500 B) $63,445 C) $56,734 D) S53,777 19. How much would you be willing to pay (rounded to the nearest dollar) for a 20-year ordinary annuity if the payments are $4,500 per year and you want to earn a rate of return equal to 5.5% per year? A) S84,500 B) $63,445 C) 56,734 D) $53,777 LLLLLL 20. You are ready to retire. A glance at your 401(k) statement indicates that you have $750,000. If the funds remain in an account earning 9.0%, how much could you withdraw at the beginning of each year for the next 25 years? A) $55,620 B) $70,050 C) $35,830 D) $2,500 21. If you invest $750 every six months at 8 percent compounded semi-annually, how much would you accumulate at the end of 10 years? A) S10,065 B) $10,193 C) $22.334 D) $21,731 22. If Cindy deposits $12,000 into a bank account that pays 6% interest compounded semi-annually, what will the account balance be in seven years? A) 18,151 B) 14,356 C) 16,987 D) 15,555 23. You have just purchased a share of preferred stock for $50.00. The preferred stock pays an annual dividend of $5.50 per share forever. What is the rate of return on your investment? A) 0.055 B) 0.010 C) 0.110 D) 0.220

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