1.
Twyla puts $1000 in a savings account that pays 4% interest, compounded monthly. How much money will be in the account 3 years later if she makes no more deposits?
A.
$1120.00
B.
$1010.03
C.
$1127.27
D.
$1124.86
Hint
2.
If a $5000 piece of equipment looses value at a rate of 5% per year, how much will it be worth after 5 years?
A.
$6381.41
B.
$3868.90
C.
$4011.62
D.
$4279.35
Hint
3.
Lance is planning to invest $5000 for a period of 3 years. He has a choice of four different investments. Which of the combinations of interest rates and compounding below will earn the most money?
A.
7%, daily
B.
7.125%, quarterly
C.
7.1%, monthly
D.
7.2%, annually
Hint
4.
Ricky invested $1000 in an account at 8% interest compounded quarterly. How much money will he have earned on the account after 7 years?
A.
$741.02
B.
$1,713.82
C.
$1,741.02
D.
$713.82
Hint
5.
Suppose inflation of money is at a rate of 3% per year in the United States. How much will a $1 candy bar cost in 30 years?
A.
$2.43
B.
$4.32
C.
$0.40
D.
$1.90
Hint