QUESTION 34 The effective annual rate (EAR) will always be the nominal rate (APR). C greater than C equal to less than C equal to or greater than QUESTION 35 What is the effective rate of interest on a CD that has a nominal rate of 9.5% with interest compounded monthly? C 9.92% C 9.74% C 10.02% C 9.86% QUESTION 36 You have decided to open a 529 plan, an education savings plan, for your newborn baby. She will begin college at age 18. You estimate that $450,000 will be needed at the time your daughter begins college to fully fund her education. How much do you need to invest today (a one-time deposit) to fully fund her university education? Your opportunity cost is 6% compounded annually. C $145,750.26 C$157,654.71 C$164,765.83 C$155,264.59 QUESTION 37 In 1969 the price per share of Berkshire Hathaway (BRK.A) common stock was $38.00. At the end of 2014 the market value of BRK.A is $170,325 per share. What would be your average annual compounded rate of return in the stock if you purchased the stock in 1969 and you have held the stock until 2014? C 88.3% C 12.7% C 20.5% C 153.2% C3883.3% QUESTION 38 If you deposit $5000 at the beginning of each year for the next 50 years into an account paying 9% compounded annually, how much will you have in the account 50 years from now? C$4,442,205.38 C$4,777,213.86 C$4,210,431.76 C$4,975,076.20 C$4,075,417.78