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QUESTION 1 You want to buy a new sports car 3 years from now, and you plan to save $9,100 per year, beginning one year
QUESTION 1 You want to buy a new sports car 3 years from now, and you plan to save $9,100 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the 3rd deposit, 3 years from now? a. $28,744.21 b. $33,630.72 c. $23,282.81 d. $34,205.61 e. $31,331.18 QUESTION 2 Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $79,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost her to buy such an annuity today? a. $822,322.84 b. $956,189.35 c. $1,176,112.90 d. $803,199.06 e. $879,694.20
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