1. POP Quiz

2. 1. You would like to retire in 40 years as a millionaire, how much should you deposit at the end of each month if the rate of return is 4 percent compounded monthly?
A.$684
B.$864
C.$468

3. 2. If your credit card company is offering 24% compounded monthly.
What is an Effective Annual Rate?
A %
B %
C %

4. 3. You have $375,000 in an account earning 9 percent compounded annually, what constant amount could you withdraw each year and have nothing remaining at the end of 20 years?
A. $41,080
B. $5,575
C. $75,000

5. 4. If you are expected to deposit $8,000 per years one through five and $10,000 per year in year six through ten. If the discount rate is 10 percent, what is the present value of these cash flows?
A. $37,907
B. $53,864
C. None of the above.

6. 5. What is the present value of APPLE preferred stock, paid dividend for $5 and the required rate of return is 15 percent?
A. $33.33
B. $10
C. $30

7. Thank you
1. B
2. C
3. A
4. B
5. A