1. Suppose Amanda wants to have $800,000 in her IRA at the end of 30 years. She chooses to invest in an annuity that pays 5% interest, compounded annually. How much of her IRA is interest at the end of 30 years?
2. If the beta of Nvidia Co. is 1.41, risk-free rate is 3% and the market risk premium is 7%, calculate the expected rate of return for Nvidia stock: 12.87% 10.62% 8.64% 14.56%
3. Marketers believe that the decision making process begins with a consumer's need recognition. Not everyone agrees. How would you answer critics who believe marketers can force people to buy things they don't want?