Sun borrows $50,000 today at 6 percent compounded annually. The terms of the loan require him to repay the principal and interest in one lump sum five years from today. How much will he have to pay in five years?

		$11,869.82
		$37,362.92
		$50,005.30
		$66,911.28

5 points

QUESTION 22

Your uncle has $1,000,000 and wants to retire. He expects to live for another 50 years and to earn 5% on his invested funds. How much could he withdraw at the end of each of the next 50 years and end up with zero in the account?

		$54,776.74
		$87,203.73
		$18,255,925.46
		$209,347,995.72

5 points

QUESTION 23

Whats the rate of return you would earn if you paid $150 for a perpetuity that pays $7.5 per year?

		1.50%
		5.00%
		7.50%
		20.00%