You are going to pay $100 into an account at the beginning of each of the next 40 years. At the beginning of the 41st year

Use the following information in solving the following question(s).

You are going to pay $100 into an account at the beginning of each of the next 40 years. At the beginning of the 41st year, you buy a 30-year annuity whose first payment comes at the end of the 41st year (the account pays 12%).

How much money will be in the account at the end of year 40 (round to the nearest $1,000)?

A) $77,000

B) $86,000

C) $69,000

D) $93,000

How much will you receive at the end of the 41st year (i.e., the first annuity payment)? Round to the nearest $100.

A) $93,000

B) $7,800

C) $11,400

D) $10,700

A retirement plan guarantees to pay you or your estate a fixed amount for 20 years. At the time of retirement, you will have $31,360 to your credit in the plan. The plan anticipates earning 8% interest annually over the period you receive benefits. How much will your annual benefits be, assuming the first payment occurs one year from your retirement date?

A) $682

B) $6,272

C) $2,000

D) $3,194

SellUCars, Inc. offers you a car loan at an annual interest rate of 8% compounded monthly. What is the annual percentage yield of the loan?

A) 8.00%

B) 8.24%

C) 8.30%

D) 8.44%