Question 17

v Question Completion Status: QUESTION 17 1 poir A US. Treasury bond will pay a lump sum of S 1,000 exactly 3 years froin today. The nominal interest rate is 6%, semiannual compounding. Which of the following statements is CORRECT? @ a. The periodic interest rate is greater than 3%. b. The PV of the S1,000 lump sum has a smaller present value than the PV of a 3-year, $333.33 ordinary annuity O c. The present value would be greater if the lump sum were discounted back for more periods. O d. The periodic rate is less than 3%. e. The present value of the $1,000 would be larger if interest were compounded monthly rather than semiannually QUESTION 18 1 point When you retire, you want to be able to withdraw $100,000 (at t0) from your savings account. Every year after that you want to increase your withdrawals by 2%. You expect that the account will earn 6% annual interest. How much money must you have in your savings accourt when you retire to make sure that your money lasts forever? None of these $2,500,000.00 $2,550,000.00 Click Save and Submit to save and submit. Click Save All Answers to save all answers Save All Answers Sa