You are considering an annuity which costs $74,100 today. The annuity pays $6,000 a year. The rate of return is 5 percent. What is the length of the annuity time period? (Do not round intermediate calculations.)
a. 19.70 years
b.2.75 years
c.9.85 years
d.12.35 years
Your parents are giving you $310 a month for 5 years while you are in college. At a 8 percent discount rate, what are these payments worth to you when you first start college?
a.15,659.71
b.15,288.71
c.14,965.71
d.$14,610.00
e.$18,600.00