If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)?
A) $827
B) $833
C) $828
D) $1,176
Which of the following is the formula for compound value?
A) FVn = P(1 + i)n
B) FVn = (1 + i)/P
C) FVn = P/(1 + i)n
D) FVn = P(1 + i)-n
At 8% compounded annually, how long will it take $750 to double?
A) 6.5 years
B) 48 months
C) 9 years
D) 12 years
At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?
A) 6%
B) 5%
C) 7%
D) 8%
An increase in future value can be caused by an increase in the
A) annual interest rate.
B) number of compounding periods.
C) original amount invested.
D) both A and B.
A friend plans to buy a big-screen TV/entertainment system and can afford to set aside $1,320 toward the purchase today. If your friend can earn 5.0%, compounded yearly, how much can your friend spend in four years on the purchase? Round off to the nearest $1.
A) $1,444
B) $1,604
C) $1,764
D) $1,283
You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your investment, how much will you sell the land for in 10 years?
A) $25,000
B) $31,060
C) $38,720
D) $34,310
If you place $50 in a savings account with an interest rate of 7% compounded weekly, what will the investment be worth at the end of five years (round to the nearest dollar)?
A) $72
B) $70
C) $71
D) $57
