Exam 1 review - Saved to this PC Search Ferences Mailings Review View Help - Aa- A E EFE t - 0- A- 1. D . AalbCcDc AabbCD AaBbC AaBbcc Aab T Normal 1 No Spac... Heading 1 Heading 2 Title Paragraph Styles 14. TOU WHO DIU UN Cimpunya ww generate >JU.a year for me next years. Ar ne end of the third year the company will be liquidated, and all the assets will be sold for $150,000. Assume a discount rate of 6%. How much should you bid? 15. You want to retire in 40 years with 1M in the bank. You can save $350/month at the end of each month. What annual percentage rate (APR) do you need to earn to achieve this goal? What is your effective rate (EAR)? 16. You will receive $500 today and every month for the next 20 years. You will receive this payment at the beginning of the month. Assume you can earn 5% on this annuity. How much is it worth? a. What is the value if the annuity pays at the end of the month? b. What is the difference between the two annuities