Bill and Cathy will be retiring in fifteen years and would like to buy an Italian villa. The villa costs $500,000 today, and housing prices in Italy are expected to increase by 6% per year. Bill and Cathy wants to deposit one lump sum amount today. If their account earns 10% per year, what is the amount of this deposit?

A.$286.858

B. $119,696

C.$487,525

D. $372,623

Susan saved $5000 per year in her retirement account for 10 years (during age 25-35) and then quit saving. However, she did not make any withdrawal until she turned 65 (i.e., 30 years after she stopped saving). Her twin sister, Jane did not save anything during the 1st 10 years (during age 25-30) but saved $5,000 per year for 30 years (during age 35-65). What will be the difference in their retirement account balance at age 65, if their investments earned an average return of 8% during the entire period?

A.102,289

B53,568

C.$236,265

D.$162,450

Based on the principles of finance, which of the following can be said to be true:

	A	Safe investments are expected to provide high returns
	B	Safe investments are expected to provide low returns
	C	Risky investments always provide high returns
	D	Risky investments are expected to provide low returns