Suppose you earned a $515,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?

Select the correct answer.

a. $53,440.90

b. $53,444.60

c. $53,433.50

d. $53,437.20

e. $53,448.30

Suppose you just won the state lottery, and you have a choice between receiving $3,600,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes.

Select the correct answer.

a. 3.36%

b. 4.36%

c. 2.36%

d. 2.86%

e. 3.86%

What's the present value of $9,000 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually?

Select the correct answer.

a. $5,821.55

b. $5,847.75

c. $5,795.35

d. $5,808.45

e. $5,834.65

American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 8.25%, with interest paid monthly, what is the card's EFF%?

Select the correct answer.

a. 12.17%

b. 3.17%

c. 4.97%

d. 8.57%

e. 6.77%

Billy Thornton borrowed $195,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month?

Select the correct answer.

a. $1,179.33

b. $1,180.53

c. $1,178.13

d. $1,175.73

e. $1,176.93

How much would $7,525 due in 50 years be worth today if the discount rate were 7.5%?

Select the correct answer.

a. $202.34

b. $200.34

c. $199.34

d. $201.34