You are ready to retire. A glance at your 401(k) statement indicates that you have $750,000. If the funds remain in an account earning 9.0%, how much could you withdraw at the end of each year for the next 25 years?

	A	$55,620
	B	$70,050
	C	$35,830
	D	$76,354

How much money do I need to place into a bank account that pays a 1.08% rate in order to have $500 at the end of 7 years?

	A	$629.51
	B	$332.54
	C	$751.81
	D	$463.78

Alice Kitchen's, Inc. bonds have a 10% coupon rate with semiannual coupon payments. They have 12 and 1/2 years to maturity and a par value of $1,000. Compute the value of Alice's bonds if investors' required rate of return is 8%.

	A	$1,239.33
	B	$1,137.10
	C	$1,156.22
	D	$1,084.44

You charged $1,000 on your credit card for Christmas presents. Your credit card company charges you 26% annual interest, compounded monthly. If you make the minimum payments of $25 per month, how long will it take ( to the nearest month) to pay off your balance?

	A	79 months
	B	94 months
	C	29 months
	D	54 months

You plan to buy a Honda car which currently costs $22,000. The car dealer offers the following two options: you can either borrow the entire amount at low interest rate of 1.99% per year compounded monthly for 36 months or get a cash rebate of $1000 and borrow at 5.99% per year compounded monthly for 36 months. Which option is better for you?

	A	Cash rebate rate since monthly payment is $623
	B	Lower interest rate since monthly payment is $623
	C	Lower interest rate since monthly payment is $630
	D	Cash rebate rate since monthly payment is $635