JG Asset Services is recommending that you invest $925 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures?

Select the correct answer.

a. $1,089.01

b. $1,092.21

c. $1,101.81

d. $1,098.61

e. $1,095.41

How much would $7,875 due in 50 years be worth today if the discount rate were 7.5%?

Select the correct answer.

a. $213.65

b. $211.75

c. $215.55

d. $217.45

e. $219.35

Your friend offers to pay you an annuity of $4,600 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

Select the correct answer.

a. $12,415.99

b. $12,432.49

c. $12,410.49

d. $12,426.99

e. $12,421.49