Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $120,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? O 8.41% 6.85% O 7.21% 0 7.59% O 7.99% Joe Smith, age 75, from Vienna, IL has the winning Powerball lottery numbers which will pay out $13 million at the beginning of each of the next 30 years (reported prize of $390 million). Before claiming his prize, Trusty Insurance Company offers Joe $200 million today in exchange for his winning lottery ticket and prize payout. What rate of return would Trusty Insurance earn if Joe accepts their offer? 0 4.73% O 4.99% O 5.47% 06.12% O 3.82% Imagine Homer Simpson actually invested the $100,000 he earned providing Mr. Burns entertainment 6 years ago at 7% annual interest and starts investing an additional $2,500 a year today at the beginning of each year for 20 years at the same 7% annual rate. How much money will Homer have 20 years from today? O $690,398 $683,224 O $489,457 O $496,631 na 1998 episode of The Simpsons, mogul Monty Burns and Homer Simpson try to Duy protection from tax evasion and a small island in Cuba with a one billion dollar bill that Mr. Burns stole from the U.S. Treasury in 1941. (Homer almost used this bill in a vending machine! How much would have this protection and island cost Mr. Burns in 1941 (as opposed to 1998) assuming a 4.5 percent annual increase in the value of this Cuba deal? O $68,219,147 O $85,013,468 O $126,338,102 O $65,281,480 $81,352,601