Knowledge Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Kyle wants to save for a new motorcycle. He deposits $2500 in a special savings account earning 6.25% interest per year, compounded semi-annually. How much money will he have at the end of three years? $2998.66 b. $3006.93 c. $3011.21 d. $3014.11 2. A bank is offering a special three-year investment certificate paying 3.25% per year, compounded monthly. How much interest would you earn by the end of the three years if you deposited $1500 in the account? a. $146.25 b. $151.05 c. $152.97 d. $153.40 3. You have decided to buy a new plasma TV. To do so, you must use your credit card to pay $1500 of the purchase price. The credit card company charges interest at a rate of 18.5% per year, compounded monthly. How much interest will you have to pay when you pay off the loan in one year? $277.50 b. $290.33 c. $302.28 d.$665.48 4. Gravenhurst has a population of 260 000. Its population has been growing at an annual rate of 3.1% for the past 10 years. If this rate of growth continues, what will be the population five years from now? d. 340 600 294 277 b. 300 300 c. 302 877 5. You deposited $5000 in an investment fund that pays 4.5% per year, compounded quarterly. How much interest will you earn over a period of five years? a. $225.00 b. $228.83 c. $1246.02 d. $1253.75 6. A $2600 investment is made for a three-year period at an interest rate of 6.5% per year, compounded annually. How much interest will be earned over the term? $169.00 b. $348.99 c. $507.00 d. $540.67 7. To pay for a trip to visit his grandparents, Edward borrowed $1200 at an interest rate of 6.25% per year, compounded quarterly. How much must he repay if he pays the loan off at the end of one year? a. $1257.13 b. $1276.78 c. $1358.46 d. $1445.38 8. An investment fund has grown by an average of 14.8% per year over the past 10 years. How much would an investment of $3000 made 6 years ago be worth today, if the growth was paid to the investors on an annual basis? a. $3444.00 $6867.09 $7065.98 d. $7174.83 9. David has $9650 put into a special investment fund that has paid, on average, 13.2% per year, compounded annually, over the last 10 years. At this rate, how much money would David have if he left the money in the fund for 6 years? a $20 305.13 b. $20 778.48 $33 341.99 d. $34 647.46 10. You are considering taking a new job. A prospective employer has offered you an annual salary of $16 000 with an increase of 6% after each year of your service. At this rate, how much will you be earning after five years with the company? C a. $20 199.63 b. $21 411.61 $22 696.31 d. $24 058.08