1. 3 years ago you invested $25,000 at aguaranteed rate of 4 percent, what is the value of that investment today?

FV = PV x (1 + r )^t

28,121.60

3125000

28,137.72

2.If you receive a stated annual interest rate of 12 percent compounded quarterly what is your year end wealth on an investment of $2.00?

Co x (1 + r/m)^m

2.2400

2.0268

2.2510

3.You are investing $5,000 at a rate of 12 percent per year compounded quarterly for 5 years, What is your wealth at the end of 5 years?

C x (1+r/m)^(rxm)

5796.37

9030.56

8811.71

4.If the stated annual rate of interest is 8 percent compounded quarterly, what is the effective annual rate?

(1 + r/m)^m -1

36.05 percent

8 percent

8.24 perecent

5.You will receive $10,000 3 years from now. Assuming a rate of 6 percent, what is the present value of the future cash flow?

PV=CF/(1+r)^t

8396.19

8374.84

9433.96