Today, you turn 23. Your birthday wish is that you will be a millionaire by your 40th birthday.

Your father helped you start saving $20 a month beginning on your 5th birthday. He always made you deposit the money into your savings account on the first day of each month just to "start the month out right." Today completes your 17th year of saving and you now have $6,528.91 in this account. What is the rate of return on your savings?    A.  5.15 percent B.  5.30 percent C.  5.47 percent D.  5.98 percent E.  6.12 percent   This cannot be solved directly, so it's easiest to just use the calculator method to get an answer. You can then use the calculator answer as the rate in the formula just to verify that your answer is correct.

63.

Today, you turn 23. Your birthday wish is that you will be a millionaire by your 40th birthday. In an attempt to reach this goal, you decide to save $75 a day, every day until you turn 40. You open an investment account and deposit your first $75 today. What rate of return must you earn to achieve your goal?    A.  7.67 percent B.  8.09 percent C.  9.90 percent D.  10.06 percent E.  10.54 percent   This cannot be solved directly, so it's easiest to just use the calculator method to get an answer. You can then use the calculator answer as the rate in the formula just to verify that your answer is correct.

64.

You just settled an insurance claim. The settlement calls for increasing payments over a 10-year period. The first payment will be paid one year from now in the amount of $10,000. The following payments will increase by 4.5 percent annually. What is the value of this settlement to you today if you can earn 8 percent on your investments?    A.  $76,408.28 B.  $80,192.76 C.  $82,023.05 D.  $84,141.14 E.  $85,008.16