Question 1 You win a contest and given $200 per year forever. If the market rate of interest is 7%. The price paid is: O $2857.14 O $52.37 O $2753.15 O $1535.14 Question 2 Your Great Uncle Dwight has told you that he will leave you an annuity that will pay $75 next year and grow at an annual rate of 3%. The payments are expected to go on forever and the interest rate is 7%. What is the value of the growing perpetuity? O $1,800 O $ 975 O $1,875 O $ 667 Question 3 What is the formula for the effective annual interest rate? O (r/m)m O [1+(r/m)]m-1 O [1+(m/r)]r - 1 O [(1+M)] Question 4 What is the future value of $3,000 after three years deposited in an account with 7% interest compounded annually? O $ 3426.41 $ 2,450.09 $3675.13 $ 3154.88