How much money must you pay into an account at the beginning of each of $20$ years in

order to have $$10,000$ at the end of the $20$ th year? Assume that the account pays $12\%$ per

year, and round to the nearest $$1.$

a$)$ $$1,195$

b$)$ $$111$

c$)$ $$124$

d$)$ $$139$

A financial analyst tells you that investing in stocks will allow you to double your

money in $7$ years. What annual rate of return is the analyst assuming you can earn?

a$)8\mathrm{.}76\%$

b$)9\mathrm{.}87\%$

c$)10\mathrm{.}01\%$

d$)10\mathrm{.}41\%$

You have just purchased a share of preferred stock for $$50\mathrm{.}00.$ The preferred stock pays

an annual dividend of $$5\mathrm{.}50$ per share forever. What is the rate of return on your

investment?

a$)0\mathrm{.}055$

b$)0\mathrm{.}010$

c$)0\mathrm{.}110$

d$)0\mathrm{.}220$