1. Suppose a bank promises an annual return of 6.0 percent on a three month (90 day) $150,000 CD. What will be the total amount due the customer at the end of the three month period? $152,437.50 $2,250.00 $152,250 $152,219.18 None of the above
2. Assume that you have $6,000 in the bank, and that you are going to receive $1,500 three times a year until the day of your retirement (20 years from now). You also need to pay $900 every year for 6 more years (Student loans). You know from your retirement that you will receive deposits of $12,000 annually for 20 years after you retire. What is the present value of all of these cash flows if the annual interest rate is 12%?