Question 1

Which of the following has the highest future value?

$2,500 invested at the beginning of each of the next five years at 6%

$10,000 invested today for five years at 7%

$2,000 invested at the end of each of the next five years at 7%

$7,500 invested today for five years at an interest rate of 12%

Question 2

You own a 3 bedroom/2 bath house. On your balance sheet, what should you use as the value of the house?

its current market value

how much you paid for it

how much it would cost for you to replace it

the balance of your loan, if any

Question 3

You plan to deposit $5,607 into a savings account paying 6% interest compounded quarterly. How much will be in your account - assuming no withdrawals-after three years?

$6,704

$4,187

$5,970

$7,563

Question 4

You plan to deposit $5,607 into a savings account paying 6% interest compounded quarterly, over five years, how much interest would you have earned?

$1,945

$7,552

$4,187

$1,720

Question 5

If $23 accumulates to $32 in 5 years, how large will $57 grow in 14 years?

$144

$123

$164

$155