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# ch2a - Question 1(1 point Your friend just won the Florida...

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Question 1 (1 point) Your friend just won the Florida lottery. She has the choice of \$15,000,000 today or a 20-year annuity of \$1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity? Student response: Student Response Answer Choices a. 2.79% b. 3.10% c. 3.44% d. 3.79% e. 4.17% Score:0 / 1 Question 2 (1 point) What's the future value of \$1,500 after 5 years if the appropriate interest rate is 6%, compounded semiannually? Student response: Student Response Answer Choices Score:1 / 1 Question 3 (1 point) Pace Co. borrowed \$25,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Pace have to pay in a 30-day month? Student response: Student Answer Choices

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Response Score:1 / 1
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