1. How much would be in your savings account in 7 years after depositing S100 today if the bank pays 5 percent interest per year? A. $135.00 B. $140.71 C. $735.00 D. $814.20 2. What is the present value of a $500 payment made in 4 years when the discount rate is 8 percent? A. S365.35 B. S367.51 C. $460.00 D. $680.24 3. What annual rate of return is earned on a $5,000 investment when it grows to $7,000 in six years? A. 1.40 percent B. 5.45 percent C. 5.77 percent D. 40.00 percent 4. How many years will it take $1 million to grow to $3 million with an annual interest rate of 7 percent? A. 10.29 years B. 14.52 years C. 16.24 years D. 33.33 years 5. At age 20 you invest $1,000 that earns 7 percent each year. At age 30 you invest $1.000 that earns 10 percent per year. In which case would you have more money at age 60? A. At age 20 invest $1.000 at 7 percent. B. At age 30 invest $1.000 at 10 percent. C. Both yield the same amount at age 60. D. There is not enough information to determine which case earns the most money at age 60. 6. You are offered a choice between $770 today and $815 one year from today. Assume that interest rates are 4 percent. Which do you prefer? A. $770 today B. $815 one year from today C. They are equivalent to each other D. $770 today at 3 percent interest rates