4. Brian has a choice between two credit cards. Credit card X has an annual interest rate of 16.5% with interest compounded seminally. Credit card Y has an annual interest rate of 16% with interest compounded daily. Brian will choose credit card ____, with effective interest rate ___.

A. X; 17.18 % B. X, 17.93% C. Y; 16.64% D. Y; 17.35%

5. How long would it take for you to save an adequate amount for retirement if you deposit $10,000 per year into an account at the end of each year that pays 8% interest rate per year if you wish to have a total of $1,000,000 at retirement?

A. 20years B. 28 years C. 36 years D. None of the above; the correct answer is ____

6. You want to put some money for your childs college education. College will cost $100,000 after 20 years. You can earn 4% annual interest rate, how much do you need to invest today?

A. $45,638 B. $55,556 C. $59,523 D. None of the above; the correct answer is ____