A beneficiary of an insurance policy has been awarded a monthly annuity of $$9,000$ per month to be paid over the next $20$ years. Using a rate of $9\%,$ what is the present value of the annuity?

$$1,118,537$

$$1,000,305$

$$1,694,301$

$$998,679$

none of the above

QUESTION $17$

A deferred annuity of $$3000$ per year will start in year $5$ and end in year $30.$ Using a rate of $7\mathrm{.}5\%,$ what is the present value of the deferred annuity?

$$25,383$

$$27,735$

$$34,189$

$$115,560$

none of the above

QUESTION $18$

A loan has monthly compounding. If the stated $($nominal$)$ rate is $15\%,$ what is the effective annual rate?

$15\mathrm{.}9\%$

$16\mathrm{.}1\%$

$15\mathrm{.}2\%$

$15\mathrm{.}4\%$

none of the above $15\mathrm{.}865$

A deferred annuity of $$3000$ per year will start in year $5$ and end in year $30.$ Using a rate of $7\mathrm{.}5\%,$ what is the present value of the deferred annuity?

$$25,383$

$$27,735$

$$34,189$

$$115,560$

none of the above

QUESTION $18$

A loan has monthly compounding. If the stated $($nominal$)$ rate is $15\%,$ what is the effective annual rate?

$15\mathrm{.}9\%$

$16\mathrm{.}1\%$

$15\mathrm{.}2\%$

$15\mathrm{.}4\%$

none of the above $15\mathrm{.}865$

QUESTION $19$

You have $$40,000$ saved so far, and will continue to save $$400$ at the end of each month. If you earn $9\%$ compounded monthly, how much will you have accumulated at the end of $40$ years?

$$2,369,516$

$$2,099,249$

$$1,361,648$

$$3,316,924$

none of the above