1) You will need $720 in 4 years for a vacation. If you earn 3% interest on your funds, how much will you need to invest today in order to reach your savings goal?

$700

$720

$639.71

$633.60

2)

If you earn 5% per year on your bank account, how long will it take to double your money?

5 years

10.4 years

not enough information

14.2 years

3)

In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $20,000 and the interest rate is 10%, the borrower pays 0.10 $20,000 = $2,000 immediately, thereby receiving net funds of $18,000 (=$20,000-$2,000) and repaying $20,000 in a year. What is the implied rate on this loan?

10%

9.5%

11.1%

20% 4) Whats the discount rate that would make you indifferent between these two options: $5,000 in year 2 vs. $20,000 in year 30? (Answer without percentage sign and round to 2 decimal places)