20.

Dr. H. has mathematically guaranteed that you can be a millionaire by the time that you retire. However, there are four factors that play a role in the mathematical guarantee of a million dollar retirement fund. Which of the following is not one of those factors?

Group of answer choices

time so that your retirement fund can grow

the actual interest rate earned on your retirement fund

the inflation rate between now and when you retire

the size of any initial deposit into your retirement fund

the size and frequency of payments into your retirement fund

21.

If today is Year 0, what is the future value of the following cash flows 6 years from now? Assume an interest rate of 5.0 percent per year.

Year	Cash Flow
2	$8,500
3	$9,300
6	$7,100

Group of answer choices

$21,041.57

$23,266.73

$25,653.05

$28,197.72

$30,143.44

22.

You want to borrow $36,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan?

Group of answer choices

8.90 percent

8.95 percent

9.00 percent

9.15 percent

9.20 percent