Your girlfriend just won the Florida lottery. She has the choice of $11,000,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity?

Select the correct answer.

a. 7.94%

b. 6.34%

c. 8.74%

d. 7.14%

e. 5.54%

Suppose you earned a $585,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?

Select the correct answer.

a. $60,678.31

b. $60,684.31

c. $60,690.31

d. $60,672.31

e. $60,696.31

JG Asset Services is recommending that you invest $1,275 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures?

Select the correct answer.

a. $1,518.40

b. $1,514.30

c. $1,510.20

d. $1,522.50

e. $1,506.10

The going rate of interest on a 5-year treasury bond is 4.25%. You have one that will pay $5,100 five years from now. How much is the bond worth today?

Select the correct answer.

a. $4,112.41

b. $4,132.01

c. $4,141.81

d. $4,122.21

e. $4,151.61

Brockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior 5 years was 4.6% per year. If that growth rate were maintained, how many years would it take for Brockman's EPS to triple?

Select the correct answer.

a. 29.43

b. 21.93

c. 26.93

d. 24.43

e. 19.43