At age 25, Katharine starts to investmoney into an Individual Retirement Account (IRA). If she decidesto save $4000 every year and invest the amount into the IRA accountat the end of each year for 30 years, how much will the accountbalance when she is 55 years old? Assume the IRA account generate7.75% interest rate per year,

         A)46,114.

         B)120,000.

         C)375,614

         D)432,868.

         E)462,114.

Assume that you win a lottery and havethe following 2 options:

     (i)First, you can receive $100K at the end of each year during thenext 3 years; or

     (ii)Second, you can receive a lump sum payment today.

     How muchshould be this lump sum payment today, which could make this twooptions are equal? Assume that interest rate is 5%.

1. $272K.
2. $279K.
3. $286K.
4. $300K.
5. $316K.

Assume that your broker offers you agreat investment opportunity:

     Theinvestment opportunity will offer you $12,000 at thebeginningof every year for twenty years. The first $12000payment would start today (t=0).

     Assumethat your opportunity cost of capital is 6% (i.e., r = 6%), howmuch is the present value of all the cash flows from thisinvestment opportunity?

1. $129,848.
2. $137,639.
3. $141,639.
4. $143,848.
5. $145,897.