You just paid $350,000 for a policy that will pay you and your heirs $12.000 a year forever. What rate of return are you earning on this policy? 3.25 percent 3.33 percent 3.43 percent 3.50 percent 3.67 percent Your car dealer is willing to lease you a new car for $299 a month for 60 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 4.9 percent per year, what is the current value of the lease? $15, 882.75 $15.906.14 $15, 947.61 $16.235.42 $16.289.54 Your credit card company quotes you a rate of 14.9 percent. Interest is billed monthly. What is the actual rate of interest (EAR) you are paying? 13.97 percent 14.90 percent 15.48 percent 15.96 percent 16.10 percent You are considering an annuity which costs $250,000 today. The annuity pays $30,000 a year at an annual interest rate of 6.25 percent. What is the length of the annuity time period? 11.11 years 11.67 years 12.14 years 12.38 years 12.49 years You are considering two loans. The terms of the two loans are equivalent with the exception of the interest rates. Loan A offers a rate of 7.45 percent compounded daily. Loan B offers a rate of 7.5 percent compounded semi-annually. Loan _____ is the better offer because _____ you will pay less interest. the annual percentage rate is 7.45 percent. the annual percentage rate is 7.64 percent. the interest is compounded less frequently. the effective annual rate is 7.64 percent