What will $225,000 grow to be in 12 years if it is invested today in an account with an annual interest rate of 11%?

Question 11 options:

	$787,151.38
	$629,721.11
	$1,046,911.34
	$891,055.37
	$1,306,671.30

You plan to retire 34 years from now. You expect that you will live 25 years after retiring. You want to have enough money upon reaching retirement age to withdraw $100,000 from the account at the beginning of each year you expect to live, and yet still have $2,700,000 left in the account at the time of your expected death (59 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 34 years. You expect that you will be able to earn 14% per year on your deposits. However, you only expect to earn 9% per year on your investment after you retire since you will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your retirement goal?

Question 20 options:

	$1,545.92
	$1,998.02
	$1,762.35
	$2,277.74
	$2,572.35

Question 21 (4 points)

You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 33 years. The annual coupon rate is 16.0% and the coupon payments are annual. If you believe that the appropriate discount rate for the bonds is 13.0%, what is the value of the bonds to you?

Question 21 options:

	$813.90
	$1,383.85
	$1,226.68
	$942.93
	$1,313.12