PART A

Jabberwocky Inc. makes quarterly (end of period) payments of $10,000 into a pension fund earning 12 percent per year compounded quarterly for 10 years. How much interest will they have earned in 10 years?

A. $40,000

B. 354,013

C. $550,255

D. $754,013

PART B

Joe Nautilus has $120,000 and wants to retire. What return must his money earn so he may receive annual benefits of $20,000 for the next 14 years.

A. Approx. 12% B. Approx. 13% C. Approx. 14% D. Greater than 15%

PART C

Mr. Darden is selling his house for $165,000. He bought it for $75,000 nine years ago. What is the annual return on his investment?

A. 9.16% B. 11.83% C. 8.50% D. None of the above