3. Rick deposited $2,750 into an account 8 years ago for an emergency fund. Today, that account is worth $4,220. What annual rate of return did Rick earn on this account assuming no other deposits and no withdrawals?

4. You are comparing two annuities that offer regular payments of $2,500 for five years and pay .75 percent interest per month. You will purchase one of these today with a single lump sum payment. Annuity A will pay you monthly, starting today, while annuity B will pay monthly, starting one month from today. Which one of the following statements is correct concerning these two annuities?

a These annuities have equal present values but unequal future values.

b These two annuities have both equal present and equal future values.

c Annuity B is an annuity due.

d Annuity A has a smaller future value than annuity B.

e Annuity B has a smaller present value than annuity A.