1. Andy has a job and will be paid $70,000 this year. Assume Andy receives a 3% raise next year and continues receiving an annual raise of 3% for 8 additional years. If Andy invests 15% of his sa lary each year and earns an annual rate of 5%, the cumulative equivalent value at the end of his 10 investments is closest to... (5) a) $157,061 b) $149,623 c) $142,457 d) $135,922 e) $142,680 f) $129,414 g) $455,707

2. How to do on financial caculator: If a 4-year bond with a 7% coupon and a 10% yield to maturity is currently worth $904.90, how much will it be worth 1 year from now if interest rates are constant?

3. Discuss current options for major U.S. oil companies in today's environment. What would you recommend?