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QUESTION 4
Suppose that on your 21st birthday you are given a $1,000,000 trust fund. If you can earn 4% in annual compound interest, how much money can you
withdraw each year to ensure that if there is money in the account forever?
$25,000.00
$47,619.05
$40,000.00
$31,280.11
None of these
QUESTION 5
How large a mortgage can you borrow now if you can afford to pay $12000 per year for the next 30 years and the interest rate is 4.25%?
None of these
$41,827.62
$5,274.73
$201,348.21
$701,826.36
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