Mark is trying to decide whether he should make his IRA contribution at the beginning of the year or at the end of the year. He wants to save $5,000 per year for 25 years in his IRA that can earn 7% per year. What would be the difference in his account value if he made the payments at the beginning of each year rather than at the end?

$22,137.16

$14,348.42

$33,061.28

$48,382.91

Your client invested $10,000 in an interest bearing promissory note earning an 10% annual rate of interest, compounded monthly. How much will the note be worth at the end of 7 years, assuming that all interest is reinvested at the 10% rate?

$20,079.20

$21,522.04

$23,067.23

$24,721.94

David won the lottery. He can take a single lump sum payout of $13 million dollars or receive $750,000 per year for the next 25 years. What rate of return would David need to break even if he took the lump sum amount instead of the annuity?

5.56%.

4.6%.

3.77%.

3.04%.

Jason received a check for $45,000 today. This was from an investment made 10 years ago. The investment earned 12% compounded quarterly. How much was his original investment?

$18,621.53.

$13,795.06.

$10,101.90.

$24,908.97.

Bob and his wife Sally recently opened an investment account with the intention of saving enough to purchase the house of their dreams. Their goal is to have 50,000 down in 8 years. Their account will guarantee them a return of 8.5% compounded annually. How much do they need to put into the account right now to reach their objective?

		$30,014.94.
		$23,840.41.
		$26,033.47.
		$35,746.23.