Tom made a purchase on property 15 years ago. The current value of the property is $120,000. If the average inflation rate was 3% for the past 15 years, what was the value of the property when you purchased it?

• $77,023.43
• $186,956.09
• $174,000.00
• $66,000.00
• $120,000.00

Today, Molly deposited $3,000 in a disk with an interest rate of 4.65%. How much can Molly withdraw in 10 years?

• $3,000.00
• $1,904.27
• $4,726.22
• $4,395.00

Today, John received tax return and realized that it would be a great opportunity to start saving some money every year for 30 years until he retires. Since he has already made a plan for how to spend this years return, he will start saving a year from today (still 30 years of contributions). John will invest $4,500 a year into an account that will give him a 6% annual return. How much will John have when he retires?

• $138,989.08
• $381,607.55
• $61,941.74
• $355,761.84
• $377,107.55

Find the present value of an annual payment of $67,000 that is received in perpetuity if the discount rate is 6%?

• $632,075
• $402,000
• $1,116,667
• $710,200
• none of the above