You just paid $350,000 for an annuity that will pay you and your heirs $18,400 a year forever. What rate of return are you earning on this policy?

Question 6 options:

	8.03%
	6.56%
	5.73%
	6.15%
	5.26%

The appropriate discount rate for the following cash flows is 7 percent compounded semi-annually. What is the present value of the cash flows? Year 1 CF=200, Year 2 CF=800, Year 3 CF=500, Year 4 CF=1500

Question 7 options:

	$2,356
	$2,430
	$2,454
	$2,577
	$2,544