Audrey wants to buy a house in Florida when she retires ten years from today. The house sells today for $ 200,000 and is expected to appreciate at 4.5% per year. How much would it cost in 5 years? 133, 632, 11 489, 856, 23 155, 296, 94 249, 236, 39 What lump-sum must she invest today at a 7% AC rate in order to pay the full price of the house in 5 years? $177, 702, 10 167, 667, 10 168, 858, 66 178, 945, 09 If instead of lump-sum she were to invest an amount at the end of each year, what would be the annual amount needed if she earns a 7% rate on the investments? $11, 690 11, 980 11, 240 43, 339.89 Your parents just retired and would like to by an annuity that will provide them with a known stream of annual payments. One insurance company offers to pay $50,000 at the end of each year for the next 20 years in exchange for a payment to day of $597, 519.12. Another company offers to pay $70,000 at the end of each year for the next 15 years in exchange for a payment today of $ 679, 857, 43. If the alternative to buying an annuity is to earn a 5.6% annual interest rate on a saving account, what would you advise them to do? Buy the 20-yr annuity buy the 15-yr annuity put their money in the savings account You can buy a fitness machine that sells for $10,000 by making monthly payments of $ 950 for 12 months. If you accept the offer, what annual rate of interest would you have paid? 2.08% 14.45 24.91 8 How much would your retirement account hold in each year, and if you earn an AC rate of 9.7%? 1,000,000 719, 662, 85 567, 321, 11 45