Question 2 (5 points)

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Question 2 options:

What is the future value of $5000 deposited at 5% for 10 years? ROUND TO THE NEAREST DOLLAR AND DO NOT USE DECIMAL PLACES.

Question 3 (5 points)

Question 3 options:

You are going to retire in 40 years and currently have $100,000. What average annual return would you have to earn on your investment to have $1 million by the time you retire? GIVE YOUR ANSWER WITH TWO DECIMAL PLACES. DO NOT USE A PERCENT SIGN.

Question 4 (5 points)

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Question 4 options:

Assume you have $100,000 now. If you get an average annual return of 4%, how many years will it take to accumulate $1 million? ROUND YOUR ANSWER TO THE NEAREST NUMBER OF WHOLE YEARS. DO NOT USE DECIMAL PLACES.

Question 5 (5 points)

Question 5 options:

What is the future value of a 3%, 10-year ordinary annuity that pays $15,000 a year? ROUND YOUR ANSWER TO THE NEAREST WHOLE DOLLAR. DO NOT USE DECIMAL PLACES. DO NOT USE A DOLLAR SIGN. DO NOT USE COMMAS.

Question 6 (5 points)

Question 6 options:

You take out a $500,000, 30-year, 3% APR mortgage. What will be the monthly payments on the mortgage? ROUND YOUR ANSWER TO THE NEAREST WHOLE DOLLAR. DO NOT USE A DOLLAR SIGN. DO NOT USE A COMMA.

Question 7 (5 points)

Question 7 options:

What should be the current price of a 10-year, 3% bond (paid semi-annually) with a $1000 face value, if the nominal rate is 2% with semi-annual compounding? ROUND YOUR ANSWER TO THE NEAREST WHOLE DOLLAR. DO NOT USE A DOLLAR SIGN. DO NOT USE A COMMA.

Question 8 (5 points)

Question 8 options:

What is the Yield-to-Maturity on a 20-year bond with a 3% coupon (paid at 1.5% every six months) that trades at 1050? STATE YOUR ANSWER IN PERCENT WITH TWO DECIMAL PLACES, ROUNDING UP. DO NOT USE A PERCENT SIGN.