Yankees offers an annuity due with monthly payments for $25$ years at $7\mathrm{.}5$ percent interest. $1$

nuity costs $$300,000$ today. What is the amount of each annuity payment?

$($a$)$ $$2,216\mathrm{.}97$

b$.$ $$2,230\mathrm{.}20$

c$.$ $$2,203\mathrm{.}20$

d$.$ $$2,261\mathrm{.}97$

e$.$ $$7,856\mathrm{.}25$

Your company will generate $$40,000$ in cash flow each year for the next nine years from a new

information database. The computer system needed to set up the database costs $$253,000.$ If you can

borrow the money to buy the computer system at $8$ percent annual interest, what is the $PV$ of the cash

flows, and can you afford the new system?

a$.$ $$269,865\mathrm{.}56,$ No$,$ the PV of the cash flows is $$ than the cost

b$.$ $$249,785\mathrm{.}52,$ No$,$ the PV of the cash flows is $$ than the cost

c$.$ $$249,875\mathrm{.}52,$ Yes, the PV of the cash flows is $>$ than the cost

d$.$ $$269,865\mathrm{.}56,$ Yes, the $PV$ of the cash flows is $>$ than the costs

e$.$ $$249,875\mathrm{.}52,$ No$,$ the PV of the cash flows is $$ than the costs

You are planning your retirement in $15$ years. You currently have $$125,000$ in a bond account and

$$400,000$ in a stock account. You plan to add $$5,000$ per year at the end of each of the next $15$ years

to your bond account. The stock account will earn a $9$ percent return and the bond account will earn a

$6$ percent return. When you retire, you plan to withdraw an equal amount for each of the next $22$ years

at the end of each year and have nothing left. Additionally, when you retire you will transfer your

money to an account that earn $$5,50$ percent. How much can you withdraw each year?

a$.$ $$164,492\mathrm{.}27$

b$.$ $$148,854\mathrm{.}06$

c$.$ $$141,085\mathrm{.}36$

d$.$ $$148,845\mathrm{.}06$

e$.$ $$141,058\mathrm{.}36$