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Questions -
Q1. You would like to have $90,000 in cash to buy a new ride when you graduate in three years. Approximately how much must you deposit at the end of each of the next 12 quarters to have $90,000 cash on the day you make your 12th and final deposit if interest is 16% compounded annually?
A. $5,500
B. $5,700
C. $6,000
D. $6,300
E. $6,500
Q2. You just won $1,000,000 in the Power Ball Lottery. You will receive $40,000 per year for each of the next 25 years beginning one year from today. If the appropriate rate is 14% compounded annually, approximately what are your winnings worth today?
A. $274,900
B. $331,200
C. $334,300
D. $362,800
E. $377,500
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