How much would a firm charge for an annuity which pays $80,000 per year for 38 years beginning today if the firm requires an 11 percent return?

• $57,623.60
• $713,487.18
• $4,220,492.97
• $791,970.77
• None of the above

Bob plan to save $630 at the end of each month for your retirement. If he expects average annual return to be 6%, how much will he have in 40 years?

• $1,254,639
• $1,170,000
• $114,501
• $1,240,200
• $1,260,912