QUESTION 12

1. You borrow $90,000 and must make annual loan payments of $6,538.41 for 30 years, starting at the end of the year. What interest rate are you being charged?

   	a.	7%
   	b.	4%
   	c.	5%
   	d.	6%
   	e.	3%

1 points

QUESTION 13

1. Your client is 45 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 10 percent. If she follows your advice, how much money would she have at age 60?

   	a.	$158,862.41
   	b.	$174,748.65
   	c.	$20,886.24
   	d.	$82,500.00
   	e.	$313,293.61