4. Sami opened his piggy bank and knew that he currently has $630.24. He is planning to have $1,080 after 3 years in order to buy an electric bike. If Sami would like to have such an amount in the future, how much must the interest rate be? Hint: Which interest rate can enable Sami to reach the desired future goal. OA) 16.55% B) 18.35% C) 19.67% O D) 22.73% D O E) None of the above 5. You are a financial analyst at Wiki Tiki Company, You are now 60 years old. You have an option (option 1) to quit your job now and get a retirement compensation as lump sum of $345,950 for working 15 years with the company. But if you decided to not to quit then you have another option (option 2) to stay in your job until age of 65 and you will retire and earn $487,997. Or you have a third option (option 3) to earn $23,455 at the end of every six months for 20 years that's when you retire at age 65. Which of the following statements is true? Knowing that interest rate is 7% semi-annual * A) Options 1 & 2 are indifferent and option 3 exceeds options 1 & 2 by $9,136 B) Option 3 exceeds option 2 by $12,886, and option 2 exceeds option 1 by $142,047 C) Options 1 & 2 are indifferent and option 3 exceeds options 1 & 2 by $154,933 D) Options 1 & 2 are indifferent and option 3 exceeds options 1 & 2 by $12,886 E) None of the above 6. After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and deposit $7,500 a year for the first 6 years and $15,000 annually for the following 6 years. The first deposit will be made a year from today. In addition, your grandfather just gave you a $20,000 graduation gift which you will deposit immediately. If the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?* A) $238,176 O B) $250,712 B) OC) $263,734 O D) $277,797 O E) $375,000