Middletown, USA currently has a population of 1.5 million people. It has been one of the fastest growing cities in the nation, growing by an average of 4% per year for the last five years. If this city's population continues to grow at 4% per year, what will the population be 10 years from now?
A) 1,560,000
B) 2,220,366
C) 2,100,000
D) 1,824,979
You bought a painting 10 years ago as an investment. You originally paid $85,000 for it. If you sold it for $484,050, what was your annual return on investment?
A) 47%
B) 4.7%
C) 19%
D) 12.8%
You deposit $5,000 today in an account drawing 12% compounded quarterly. How much will you have in the account at the end of 2 1/2 years?
A) $7,401
B) $5,523
C) $7,128
D) $6,720
How many years will it take for an initial investment of $200 to grow to $544 if it is invested today at 8% compounded annually?
A) 8 years
B) 10 years
C) 11 years
D) 13 years
When using a financial calculator, which of the following is the correct way to find the future value of $200 deposited today in an account for four years paying annual interest of 3% ?
A) N=4, i=.03, PV=-200, PMT=0, solve for FV
B) N=4, i=3, PV=-200, PMT=0, solve for FV
C) N=4, i=3, PV=0, PMT = $200, solve for FV
D) N=4, i=3, FV=200, PMT=0, solve for PV
The future value of a single sum:
A) increases as the compound rate decreases.
B) decreases as the compound rate increases.
C) increases as the number of compound periods decreases.
D) increases as the compound rate increases.
