Question: In three years, Benjamin will begin receiving an annual payment of $525 that will be made for seven years and in two years, Franklin will

In three years, Benjamin will begin receiving an annual payment of $525 that will be made for seven years and in two years, Franklin will begin receiving an annual payment of $525 that will be made for eight years. If both individuals deposit the payments into accounts that earn an annual interest rate of 8.50%, then how much larger is the balance in Franklins account than Benjamins account at the end of the tenth year? A. $766.08 B. $815.73 C. $885.07 D. $929.33 E. $960.30

If you start making $65 monthly contributions today and continue them for 5 years, what is the present value of this annuity due if the APR is 4.38%?

A. $3,497 B. $3,510 C. $3,584 D. $4,351 E. $4,367

Which of the following statements is (are) correct? (x) A perpetuity is an annuity with an infinite life that is making continual payments. (y) If interest rates are 8.5 percent then the present value of a $50 perpetuity is $588.24. (z) A perpetuity makes equal payments forever A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (x) only

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