Today you plan to deposit a lumpsum amount in a bank account that will earn an annual interest rate of 5%. The purpose of this deposit is to earn $2,000 interest income every year to donate to charity at each year-end forever. What lumpsum amount must you deposit today? a) $40,000 b) $50,000 c) $80,000 d) $140,000 e) None of the above A 5-year $50,000 loan is to be paid off by monthly payments of $1,410.20 at each month-end. What monthly interest rate and effective annual interest rate are being charged on the loan? a) 0.5%;6.17% b) 1%;12.68% c) 1.5%;19.56% d) 2%;26.82% e) None of the above A bank's certificate of deposit carrying 12% annual interest rate will pay $1,000 at the end of one year from today. Will the certificate sell at a higher price if the interest is compounded semi-annually rather than annually? True False Investing in a 5-year, $1,000 face value bond carrying 8% annual coupon interest is equivalent to investing in a bank account at 8% annual compound interest rate. True False