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



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