You want to accumulate $1,000,000 in retirement funds by your 65th birthday. Today is your 30th birthday, and you plan on making annual investments into a mutual fund that you project will earn a 9% annual rate of return. Your first deposit will take place today and your last deposit will take place on your 65th birthday. What is the amount of the annual payment you must make each year in order to have $1,000,000 in your account on the day you make your last deposit - that is, on your 65th birthday?

You are talking to your roommate about an investment proposal he was offered. The proposal indicated that you could double your money in 6 years. According to his reasoning, that would be an annual rate of 16.67% per year. Do you agree with his assessment that he would earn that rate? Disagree. The true rate is 33% per year. Disagree. The true rate is only 8.33% per year. O Disagree. The true rate is 12.25%. O Agree. The rate is 16.67%. None of the above are correct