1) Dr. Acosta has been secretly depositing $10,500 in her savings account every December starting in 1994. Her account earns 6 percent compounded annually. How much did she have in December 2006?

What is the number of periods (N) in this question?

[Hint.: Draw a timeline and check the number of years.]

a) 11

b) 13

c) 12

d) 10

2) Dr. Acosta has been secretly depositing $10,500 in her savings account every December starting in 1994. Her account earns 6 percent compounded annually. How much did she have in December 2006?

To answer this question you need to calculate for

a) the future value.

b) the future value of an annuity due.

c) the present value.

d) the future value of an ordinary annuity.

3) Dr. Acosta has been secretly depositing $10,500 in her savings account every December starting in 1994. Her account earns 6 percent compounded annually. How much did she have in December 2006?

a) $198,262.45

b) $138,398.35

c) $177,134.38

d) $157,202.25