Atlas Insurance wants to sell you an annuity which will pay you $1,600 per quarter for 25 years

Atlas Insurance wants to sell you an annuity which will pay you $1,600 per quarter for 25 years. You want to earn a minimum rate of return of 6.5 percent. What is the most you are willing to pay as a lump sum today to buy this annuity?    A.  $72,008.24 B.  $74,208.16 C.  $78,818.41 D.  $83,008.80 E.  $88,927.59

48.

Your car dealer is willing to lease you a new car for $245 a month for 48 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 6.5 percent, what is the current value of the lease?    A.  $10,331.03 B.  $10,386.99 C.  $12,197.74 D.  $12,203.14 E.  $13,008.31

49.

Your great aunt left you an inheritance in the form of a trust. The trust agreement states that you are to receive $2,400 on the first day of each year, starting immediately and continuing for 20 years. What is the value of this inheritance today if the applicable discount rate is 6.75 percent?    A.  $24,890.88 B.  $26,311.16 C.  $27,677.34 D.  $28,909.29 E.  $29,333.33