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. 5.94% b. 6.54% c. 7.74% d. 7.14% e. 8.34% What's the present value of $1,875 discounted back 5 years if the appropriate interest rate is 6%, compounded monthly? Select the correct answer. a. $1,395.97 b. $1,401.87 c. $1,378.27 d. $1,384.17 e. $1,390.07 Suppose your credit card issuer states that it charges a 20.25% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding. What is the effective annual rate? Select the correct answer. a. 21.64% b. 22.54% C. 22.24% d. 22.84% e. 21.94% Billy Thornton borrowed $95,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month? Select the correct answer. a. $578.16 b. $571.86 C. $576.06 d. $573.96 e. $569.76