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 $8,000 will be worth $9,528.13 three 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?

3.60%

4.80%

6.00%

7.20%

2)If an investment of $40,000 is earning an interest rate of 7.50% compounded annually, it will take (0.2 YEARS,1.5 YEARS, 6.0 YEARS,6.5 YEARS) for this investment to grow to a value of $61,732.06assuming 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?

If you invest $5 today at 15% annual compound interest for 82.3753 years, youll end up with approximately $100,000.

If you invest $1 today at 15% annual compound interest for 82.3753 years, youll end up with approximately $100,000.