The itemized deduction allowed for an individual 65 and older is higher than the itemized deduction for a younger taxpayer.

You plan to place a $40,000 down payment on a lake cabin in Northern Minnesota in five years. If you invest in a long-term CD earning an annual rate of 5.50%, how much would you need to invest today to have enough for the down payment in five years?

A) $33,326 B) $30,605 C) $24,379 D) $18,264

Camille purchased a bond 5 years ago for $1,050. The bond paid $50 in annual interest and returned the $1,000 principal at the end of the fifth year. Camille used the interest payment to pay for college textbooks

A) Her internal rate of return was exactly than 5%. B) Her internal rate of return was greater than 5%. C) Her internal rate of return was less than 5%. D) Her internal rate of return cannot be determined.