QUESTION $3$

Lee wishes to accumulate $$3$ million by making equal annual end$-$of$-$year deposits over the next $25$ years. If he can earn $7\mathrm{.}8\%$ on his

investments, how much must he deposit at the end of each year?

A$.$ $$40,570$

B$.$ $$42,251$

C$.$ $$38,107$

D$.$ $$50,000$

QUESTION $4$

Your parents just called and would like some advice from you. An insurance agent just called them and offered them the opportunity

to purchase an annuity for $$25,000$ that will pay them $$3,000$ for $20$ years, but they don't have the slightest idea what return they will

be making on their $$25,000$ investment.

What rate of return will your parents be earning?

A$.10\mathrm{.}56\%$

B$.10\mathrm{.}32\%$

C$.12\mathrm{.}74\%$

D$.13\mathrm{.}20\%$