3) The Milken Company is offering you an investment that promises you $1,000 at the end of ten years if you invest $500 today. What is the annual return on this investment?

7.18%

8.17%

1.87%

None of the above

4) If you deposit $1,000 each year, starting the end of first year, in an account that pays 10% interest per year, compounded annually, what will be the balance in the account after you have made ten payments, assuming you make no withdrawals from the account?

$37,159

$15,937

$73,951

None of the above