2. Ross sets up auto-payment for his monthly Netflix payments so that at the beginning of every month $13.99 will be automatically withdraw from one of his savings accounts and sent to Netflix. This savings account pays a generous 2.0% monthly interest. He wishes to move enough money from his other accounts into this one so that he won't need to worry about it running out of money for the next 2 years. In addition, he also wishes to have $100 remaining balance in the account after the last monthly payment so that the account stays free of maintenance fee. How much money will he need to put into the account right now so that it has enough for 24 monthly withdrawals over the next two years and has $100 leftover as expected? A. $332 B. $326 C. $419 D. $436 3. A college's endowment represents money or other financial assets that are donated to the college and are meant to be invested to grow the principal and provide additional income to support the college's operational expenditures. Consider a college endowment that has just been created with a donation of $180 million. The endowment is invested at an annual return of 8.25%. The endowment will withdraw $ 14 million per year at the end of each year to support the college's operations. When will the endowment run out of money? A After 28 years B. After 38 years C. After 58 years D. It will not run out of money 4. Edward took out a loan of $3,000 today at monthly interest rate of 1%. If he pays off this loan with one single payment in 10 years, what is the dollar amount of interest he needs to pay then? A $1.990 B. $4,990 c. $6,901 D. $9,901 5. All other things being equal, the present value of a single future sum will be smaller if A. the future amount is smaller B. the future amount is further into the future C. a lower interest rate is used