1. A business acquaintance promises to deliver a $20 bill to you one year from today. How much should you be willing to pay today for this promise?

More than $20

Exactly $20

Less than $20

2. What is the present value of $1,000 received three years from today if interest rates are currently 6 percent?

$943.40

$839.62

$1,191.02

$1,000.00

3. What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?

5%

10%

7.36%

2.54%

4. The product rule of exponents says that when multiplying two powers that have the same base, you need to ________.

divide the exponents

add the exponents

multiply the exponents

subtract the exponents

5. The fifth root of fifteen is equal to ________.

15 raised to the power of 15

one fifth of 15

15 raised to the power of 1/5

one fifteenth of 15