57) Colleen wants her son, Jack, to be a millionaire. Jack is four years old today when she deposits $38,000 into an investment account that pays 12% per year for the first 5 years then 6% very year thereafter. The funds in the account will be distributed whenever the total reaches $1,000,000. How old will Jack be when he gets the money? (Round age down) A) 51 B) 50 C) 59 D) 37 E) 55 58) Today, Floyd borrowed $30,000 to move to Cleveland. The loan has a stated APR of 6.7% and compounds quarterly. The loan is payable in one lump sum 3 years from today. How much in total interest will Floyd pay on this loan? A) $6,443.03 B) 51,654.43 C) $6,030.00 D) $6,617.73 E) 52,205.91 59) The Pun Cooker was introduced as a new product 56 years ago at a price of $39.99. Today, a new, but identical Fun Cooker sells for $169.99. If the inflation rate over that time was 2.7% per year, which of the following statements is true on an inflation adjusted basis? A) the Fun Cooker is cheaper today B) the Fun Cooker is more expensive today C) the Fun Cooker is the same price today D) the prices cannot be compared B) it depends on the price of the extended warranty 60) Lix plans to sell her dream home 7 years from today at a price of $2,000,000. Dennis offers to buy her home today for $1 million cash. If Liz's opportunity cost of capital is 7.2%, should she take the cash offer today? A) no, because she would lose $1 million in value B) no, because the cash offer has a future value of 51,626,910 C) yes, because the present value of the future selling price is $1,229,324 D) no, because the present value of the future selling price is $1,124,832 D ves, because the cash offer has a future value of 51,504,892