1a.) Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 20.59%, with interest paid monthly, what is the card's EFF%?

18.58%

19.56%

20.54%

21.57%

22.65%

b. You want to go to Europe 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 15.87% per year. Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?

$18,369

$19,287

$20,251

$21,264

$22,327

c. Your uncle is about to retire, and he wants to buy an annuity that will provide him with $71,249.98 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?

$ 825,835

$ 869,300

$ 915,052

$ 963,213

$1,011,374