Q1. If you set yourself a goal of investing X amount today, earning interest at 5%, in order to withdraw $10,000 at the end of each year for the next three years, how much is X?
$30,000
Between $25,000 and $26,000
$31,525
None of the other alternatives are correct
$27,232
Q2. Ruthy borrows $60,000 from the Mighty Bank today and the Bank requests her to repay her loan in four equal payments along with 12% interest. Each of the four payments must be paid at the end of the next four years. What is the amount of each payment?
$38,130
$38,130 plus 12% interest
$15,000 plus 12% interest
$19,754
$19,754 plus 12% interest