1. A 5-yez bond costs $4,000 and will pay a total of $1,200 interest over its lifetime. What is its annual interest rate? a 12% b. 30% c. 6% d. 2% e. e 5% 2. Calculate the future value of an investment of $3,000, after one year, if it is deposited in a savings account that is compounded quarterly at an annual rate of 12%. a $3,960,00 b. $3,576.95 c. $3,376.53 d. $3,380.00 e None of these 3. Find the effective annual interest rate of 5% compounded quarterly 5.34% b. 5.25% c. 5.09% d. 5.39% e. None of these 4. Calculate the present value of an investment that will be worth $4,000 after 3 years at 7%/year compounded annually. a a $3,137.04 b. $3,265.19 c. $3,622.31 d. $2.593.95 e $3,244.32 5. You deposit $500 in an account at the Lifelong Trust Savings and Loan that pays 4%/year compounded quarterly. By how much will your deposit have grown after 4 years? Round the answer to the nearest cent. a $836.29 b. $586.29 c. $86.29 d. $86.19 e $83.19 6. Find the amount accumulated in the increasing annuity of $200 deposited monthly for 10 years at 7%/year (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round to the nearest cent. a $8,038.65 b. $25,680.00 c. $34,616.96 d. $68,902.68 e $3.461.70 7. Find the amount accumulated in the increasing annuity of $150 deposited monthly for 5 years at 5%/year. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Answer is rounded to the nearest cent a $46,200.91 b. $10,200.91 c. $2,887.56 d. $18,900.00 e $4.620.09 8. Determine the monthly payment necessary to accumulate $30,000 in a fund paying 5% per yea, compounded monthly, for 5 years. Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. a. $478.62 per month b. $441.14 per month C. $483.62 per month d. $498.49 per month e $417.61 per month 9. How much would you have to invest when you are 22 years old at 7% compounded monthly to end up with a million dollars by age 52? Round your answer to the nearest thousand. a $213.000 b. $131,000 c. $215,000 d. $123,000 e. None of these 0. Find the present value of the decreasing annuity necessay to fund a withdrawal of $1,700/ quarter for 20 years, if the annuity earns 3%/yez (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. a $101.990.55 b. $102,695.46 c. $101,962.64 d. $102,205.22 e $102,103.02
