QUESTION 1 Interest earned on both the initial principal and interest reinvested from prior periods is called Simple interest Compound interest Dual interest free interest QUESTION 2 Kurt won a lottery and will receive $1000 a year for the next 50 years. The value of his winnings today discounted at his discount rate is called Single sum Future value Present value Compounded value QUESTION 3 Which one of the following will create the lowest present value for the same future value? 6% annual rate for 5 years 6% annual rate for 3 years 0% annual rate for 5 years 0% annual rate for 10 years QUESTION 4 Travis invested $8.250 in an account thu pays 4 percent simple interest How much more could he have earned over a 7-year period if the interest had compounded annually? 341 41 296.44 302.16 266 67 QUESTION 5 You are depositing 33.000 in a retirement account today and expect to eat an average return of 75 percent on this money. How much additional income will you can if you leave the money invested for 45 y tead of just Voyeus 25 723 08 23 581.80 22 44156 18.06.19 QUESTIONS W Your le site deposited 520 65 percent interest 5 years You would like to have est How much more money must you depot today than your did you are to have the me much money the end of the next 5 years as your sister will have. However you can n t at the end of the QUESTION Saty years you theme Today th t is 4006511 11 Sirty years ago your mother invested $4500. Today that investment is worth $430,065 11. What is the average annual rate of return she earned on this investment? 6.67% 1171% 7.90% 10.40% QUESTIONS On your ninth birthday you received $300 which you invested at 4.5 percent interest, compounded annually. Your investment is now worth $756. How old are you today? 29 30 31 32 QUESTIONS At 5 percent interest how long would take to quadruple your money? 2555 years 0 16 64 years 02379 years 2001 years QUESTION 10 You have made 1 500 com o your bl o t me you can earn of 7 percent and make additional contributions much more your account be T 17