1) How much more current value does a perpetuity of $130 a year have as compared to an annuity of $130 a year for 50 years given an interest rate of 7.3 percent?

$38.36

$52.56

$70.73

$33.78

2) What is the present value of an annuity due if the payments are $78 a month for 60 months at a monthly interest rate of 2 percent?

$2,611.04

$2,614.02

$2,765.58

$2,673.30

3) Susan has been saving $11,500 a year ever since she started to work. She has earned an average return of 9.86 percent and now has a total of $242,629 in her savings account. How many years has it been since Susan first started saving money?

8.93 years

11.96 years

13.92 years

11.11 years