a) James inherited an annuity worth $4653.59 from his uncle. The annuity will pay him six equal payments of $1,100 at the end of each year. The annuity fund is offering a return of_______.
a) 9.5%
B) 12.98%
c) 14.85%
d) 11%
b) Jame's friend Chris, wants to go to business school. While his father will share some of the expenses, Chris still needs to put in the rest on his own. but Chris has no money saved for it yet. According to his calculations, it will cost him $37,617 to complete the business program, including tuition, cost of living, and other expenses. he has decided to deposit $5,000 at the end of every year in a mutual fund, from whih he expects to earn a fixed 9% rate of return. it will take approximately ________ years for Chris to save enough money to go to business school.
a) 5.10
b) 8.10
c) 7.5
d) 6