Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE

6-Ron and Louisa Cumberbund desire to have $1,000,000 accumulated in their retirement account by the time Louisa reaches 65. She is currently 35. The Cumberbunds have four children who they expect will go to college in 15 years. The Cumberbunds do not think they will be able to save any money while the children attend college. How much must the Cumberbunds save each year over the next 15 years at a 10% rate of return to achieve their retirement objective? Hint: Draw a timeline that represents this problem, with all payments at the end of each year.

A)$7,534.57

B)$239,392.05

C)$31,473.78

D)$6,079.25

7-Your great aunt has willed you preferred stock that pays a dividend of $1.25 each year. What is the rate of return on the stock if it currently sells for $13 per share?

A)16.25%

B)9.62%

C)10.40%

D)0.10%

8-How much will you have to deposit with an institution paying 8.76% to establish a scholarship of $1500 awarded semi-annually to a Texas State student? Round your answer to a whole number.

9-You are 30 and you want to retire at 70 with an income of $100,000 per year for 20 years. You expect to earn an average rate of return on your savings of 7.5%. What is your required annual savings from age 30 to age 70? Assume that you have no savings today and all payments are made at the end of the period.

A)$25,486.23

B)$5,216.78

C)$4,485.90

D)$23,541

10-What is the future value of the following deposits which you made at the end of each year to your savings account: $100, $100, $100, $100, $50, $50, $20? The current balance in your savings account is $585.13 and your annual rate of return is 8.25%. Hint: Enter your current savings balance as a cash flow at the present time (CF₀).

A)$706.42

B)$405.57

C)$990.70

D)$1,725.59