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You bought a racing dog that had a winning streak for six years, bringing in $681,000...

You bought a racing dog that had a winning streak for six years, bringing in $681,000 per year (with the cash received at the end of each year; ORDINARY ANNUITY), before retiring. If you paid $2,800,000 up front for the pooch, what was your annual return (APR) over this 6-year period (round to the nearest percent)?

a. 15%

b. 13%

c. 16%

d. 14%

e.12%

Consider a $50,000 investment earning 6% APR for 10 years. How much additional interest would you earn if the investment were compounded monthly as opposed to compounded annually? Round to the nearest dollar.

a. $3,036

b. $906

c. $2,126

d $1,427

e. $529

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Expert Solution

jeff jeffy answered 1 year ago
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