Student Name:
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(2 hour max)
Final (Open book) You can use a calculator Time Allowed: 2 hours
25 Points Each Show Your Work
1. You want to provide your family with $250,000 annually forever. What lump sum must
you provide them when you die if you expect your money will earn 5% interest?
A. $1,000,000
B. $2,500,000
C. 54,750,000
D. $5,000,000
2. What number of months will it take you to pay back $525 to Dr. No if you are making
monthly payments of $15 at an interest rate of 18% compounded monthly?
A. 25
B. 50
C. 75
D. 101