Last Thursday I had this wild finance midterm. It was 30 questions, all multiple choice, but here’s the deal. It had no exact answers. The directions all said: select the answer that is closest to your answer. WHAT?!

Ex: Today is January 1, 2006, Jeffery is currently 29 years old and wants to retire early. When Jeffery retires he would like to be able to withdraw $20,000 per month for 20 years. After those twenty years, he wants to leave a trust fund to his nephew worth $200,000. If there is a 10% discount rate on his investment, how much does Jeffery need to deposit each month, starting one month from today in order to retire in 20 years?

a. 1800
b. 1850
c. 1900
d. 1950
e. 2000

Can you imagine?

Now its time to get back to studying for my marketing midterm on Wednesday.