An investment will pay you $5,000 two years from today and another $5,000 six years from today. If you require a 9% annual rate of return the investment, how much is the investment worth to you today?

a. $6,954.60

b. $7,189.74

c. $7,974.78

d. $7,698.90

e. $7,437.54

You plan to retire 30 years from today. You wish to have enough in your retirement account to provide you with $50,000 at the end of each year for 20 years after you retire. How much must you place in the account today? Use an interest rate of 7%.

a. $99,851.47

b. $209,507.57

c. $69,585.26

d. $306,466.13

e. $144,173.72