You have been accepted to study international economy at the European Central Bank (ECB) in
Frankfurt. You will need $10,500 every 6 months (beginning today) for the next three years to cover
tuition and living expenses.
Mom and Dad have agreed to pay for your education, and want to
make one deposit today in a bank account earning 6% interest, compounded semiannually. How
much must they deposit now so that you can withdraw $10,500 at the beginning of each semester
over the next 3 years?
A) $55,797 B) $54,187 C) $58,587 D) $56,639
C
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All of these statements about life insurance settlement options are false, except:
A. Fixed amount is the default option when no option is selected. B. Life income payments are income tax free. C. Life income with 10 years certain provides at least 120 months of payments. D. Settlement options like fixed period are good ways to provide an income to a beneficiary who cannot handle large sums of money.
Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________
A) $275 B) $280 C) $295 D) $300 E) $335