The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations.

1.) If a security of $6,000 will be worth $11,692.30 seven years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security?

6.00%

7.50%

10.00%

12.00%

2.) If an investment of $50,000 is earning an interest rate of 5.50% compounded annually, it will take _____ for this investment to grow to a value of $61,941.23assuming that no additional deposits or withdrawals are made during this time.

3.) Which of the following statements is true, assuming that no additional deposits or withdrawals are made?

An investment of $50 at an annual rate of 5% will return a higher value in five years than $25 invested at an annual rate of 10% in the same time.

An investment of $25 at an annual rate of 10% will return a higher value in five years than $50 invested at an annual rate of 5% in the same time.