1. 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Welcome to Who Wants to be a Millionaire 50:50

2. © Mark E. Damon - All Rights Reserved

3. 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

4. © Mark E. Damon - All Rights Reserved C: Contingent Annuities B: Annuities uncertain D: Perpetuity 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 B: Annuities uncertain Which of the following is not a type of annuity? A: Annuities Certain

5. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

6. © Mark E. Damon - All Rights Reserved A: Simple, General, Contingent C: General, Contingent, Perpetuity B: Simple, Perpetuity, Differed D: Simple, ordinary, perpetuity 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Describe the following set of cash flows: Payments of $500 starting in five months w/ interest rate of 10% compounded monthly. Payments at end of month. D: Simple, ordinary, perpetuity

7. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

8. © Mark E. Damon - All Rights Reserved A: Random, Contingent, Perpetuity C: Simple, differed, annuity B: Contingent, Ordinary, Simple D: Annuity, Simple, General 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Describe the following set of cash flows: You invest $10,000 in an account paying interest compounded monthly with the provision that equal monthly payments be made to him from the account for fifteen years at the beginning of the each month starting ten years from the date of deposit. C: Simple, differed, annuity

9. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

10. © Mark E. Damon - All Rights Reserved 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Describe the following set of cash flows: 25 Payments of $100 starting in one month w/ interest rate of 10% compounded monthly. Payments at end of month. A: Simple, ordinary, annuity B: General, ordinary, perp. C: Contingent, Perpetuity, Annuity D: Simple, ordinary, perp. A: Simple, ordinary, annuity

11. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

12. © Mark E. Damon - All Rights Reserved A: Pension Payments C: Mortgage Payments B: Employment Insurance D: Payments from your SLG leader 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Which of the following is an example of an annuity certain? C: Mortgage Payments

13. © Mark E. Damon - All Rights Reserved Congratulations! You’ve Reached the $1,000 Milestone! Congratulations! C o n g r a t u l a t i o n s !

14. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

15. © Mark E. Damon - All Rights Reserved A: Mortgage Payments C: Lease payments on equipment B: Pension payments D: Lease payments on a car 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Which of the following is an example of an annuity contingent? B: Pension payments

16. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

17. © Mark E. Damon - All Rights Reserved A: Pension payments C: Mortgage payments B: Lease payments D: Scholarship fund 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Which of the following is an example of a perpetuity? D: Scholarship fund

18. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

19. © Mark E. Damon - All Rights Reserved 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 A: General, Differed, Perpetuity C: General, Contingent, Ordinary B: General, Differed, Annuity D: General, Contingent, Differed 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Describe the set of cash flows: Lisa sets up a trust fund earning interest compounded semi-annually to provide equal monthly support payments for her surviving husband starting one month after her death. Payments at end of month. C: General, Contingent, Ordinary

20. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

21. © Mark E. Damon - All Rights Reserved A: $5,235.78 C: $1,000 B: $4,212.36 D: $4,150.00 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Find the present value of: Payments of $1000 at the end of the year, with interest rate of 6% compounded annually. B: $4,212.36

22. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

23. © Mark E. Damon - All Rights Reserved A: $5,637.09 C: $5,555.22 B: $5,623.98 D: $5,620.01 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Find the future value of: Payments of $1000 at the end of the year, with interest rate of 6% compounded annually. A: $5,637.09

24. © Mark E. Damon - All Rights Reserved Congratulations! You’ve Reached the $32,000 Milestone! Congratulations! C o n g r a t u l a t i o n s !

25. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

26. © Mark E. Damon - All Rights Reserved A: $75,667.00 C: $80,023.26 B: $56,331.38 D: $77,299.76 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Find the cash value of a vacation property with $5,250 down payment and payments of $6,000 every 6 mths for 10 years. The interest rate is 10% compd. Semi-annually C: $80,023.26

27. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

28. © Mark E. Damon - All Rights Reserved A: 35.629 months C: 66 months B: 998 days D: 2.969 years 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 A car loan of $15,599 is to be repaid with end-of-month payments of $350.22. If interest is 15% compounded monthly, how long is the term of the loan? C: 66 months

29. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

30. © Mark E. Damon - All Rights Reserved A: $29,026.05 C: $88,094.72 B: $21,769.53 D: $48,110.35 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Amir recently bought a rental property valued at $1,000,000 by paying 25% down and mortgaging the balance over twenty years through equal payments at the end of each quarter at 10% compounded quarterly. What was the size of the quarterly payments? B: $21,769.53

31. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

32. © Mark E. Damon - All Rights Reserved A: $4,049.65 C: $4,026.36 B: $3,900 D: $3,726.36 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 You’ve signed a mortgage that requires payments of $300 at the end of each month for the next 10 years. Interest is 7.5% compounded monthly. If you missed the first 12 payments, how much would you have to pay on the 13 th month to bring the mortgage payments up to date? A: $4,049.65

33. © Mark E. Damon - All Rights Reserved 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100

34. © Mark E. Damon - All Rights Reserved A: $355.50 C: $395.86 B: $346.87 D: $367.78 50:50 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 $1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 When his daughter was born, Mr. Dodds started depositing $200 every 3 months into a trust fund earning 3% comp. quaraterly. Following her eighteenth birthday, Mr. Dodd’s daughter is to receive equal payments at the end of each month for 4 years while she is at university. If interest is to be 3.9% compounded monthly after the 18 th birthday, how much will she receive every month? A: $355.50

35. © Mark E. Damon - All Rights Reserved YOU WIN $1 MILLION DOLLARS!