Question
1......Mo Motion has $120,000 and wants to retire and do nothing but play golf. Mo estimates that she will need quarterly benefits of $5,000 for
1......Mo Motion has $120,000 and wants to retire and do nothing but play golf. Mo estimates that she will need quarterly benefits of $5,000 for the next 14 years. What return must Mo earn on her money to ensure that she receives her quarterly benefits?
Select one: A. 12% B. Between 12% and 13% C. 14% D. Greater than 14%
2.....Webb Dot Com Corporation wants to buy a new computer that will cost $3,095 four years from today. The company plans to set aside an equal amount at the end of each year to accumulate the amount needed. If Webb Dot Com can earn 7% annual return., how much should it set aside each year?
Select one:
A. $697.08
B. $627.93
C. $823.15
D. $531.81
3.....
Catriona received a bonus of $50,000 from her employer, which she deposited in an account at her local bank. The bank will pay her a constant amount at the end of each year for 6 years and the account's balance will be zero at the end of the sixth year. If the bank has promised Catriona a 9% annual return, how much will she receive each year?
Select one:
A. $11,146
B. $10,037
C. $12,598
D. $11,480
4....
PACE Industries will invest $5,000 at the beginning of each year for the next 10 years. The annual interest rate is 8%. How much will the company have at the end of the investment period?
Select one:
A. $78,471.
B. $62,440.
C. $67,435.
D. $78,227.
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