Question: 7. Approximately what interest rate is needed to double an investment over 16 years? A. 8.0% B. 5.5% C. 4.4% D. 3.5% E. 3.0% 8.

7. Approximately what interest rate is needed to double an investment over 16 years? A. 8.0% B. 5.5% C. 4.4% D. 3.5% E. 3.0%

8. What annual rate of return is earned on a $500 investment when it grows to $880 in ten years? A. 5.82% B. 6.48% C. 7.05% D. 7.76% E. 8.20%

9. Gretchen wants to retire in 35 years and she has saved $160,000 as of today. She wants the account to grow to $1,250,000 upon retirement. If interest is compounded annually, what rate will Gretchen need to earn on the account to achieve this goal? A. 5.75% B. 5.95% C. 6.05% D. 6.25%

E. 6.45%

10. What is the present value of a $10,000 cash flow made in year 15 when interest rates are 8.50 percent? A. $2,841 B. $2,941 C. $3,333 D. $3,191 E. $3,399

11. What is the value in year 3 of a $1,750 cash flow made in year 12 when interest rates are 12.5 percent? A. $426 B. $606 C. $643 D. $712 E. $880

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