1. David won the lottery. He can take a single lump sum payout of $50 million dollars or recieve $1,000,000 per year for the next 25 years. What rate of return would David need to break even if he took the lump sum amount instead of the annuity?
A. 5.69%
B. 5.31%
C. 4.98%
D. 4.75%
2. Henry recently purchased a house for $350,000. He made a down payment of $50,000 and financed the balance over 30 years at 4%. If Henry's first payment is due on Feb 30th of the current year, how much interest expense will he pay in the current year?
A. $14,322.50
B. $10,919.96
C. $12,342.11
D. $4,387.88