In 1947, your grandfather bought a painting for $1 million. In 2005, you sold it for $60 million. What annual return on investment did you earn on your grandfathers purchase? A. 8.90% B. 6.96% C. 9.99% D. 7.31% E. 9.59% Question 26 You purchased a car for $40,000 with no down payment. You plan to pay it off with monthly payment $900 in 5 years. What is the effective annual rate of interest on the loan? A. 13.25% B. 11.67% C. 12.75% D. 12.50% E. 12.35% Question 27 An investment offers to pay you $7,000 per month for the next 10 years (The payments start a month after you purchase the investment). If you require 12% rate of return, how much should you pay for this investment? (Answers are rounded.) A. $280,000 B. $840,000 C. $485,400 D. $487,900 E. $978,200