1.) If I invest $20,000 at 2.5% today, how long will it take to reach a minimum of $50,000 compounded semi-annually?

a. 5 years.

b. 19 years.

c. 9 and years.

d. 17 years.

2.) If I invest $100 at the end of each year for four years at 6% how much will I have at the end of the fourth year?

a. $421.24.

b. $437.46.

c. $563.71.

d. $432.95.

3.) The difference between the present value and the future value of a sum of money depends upon:

a. The rate of interest.

b. The length of time.

c. The rate of interest and the length of time.

d. Neither the rate of interest nor the length of time.

4.) To determine the present value of a single amount to be received or paid at a future time you need to know all of the following except:

a. The interest rate or discount rate.

b. The number of periods.

c. The future value.

d. The time between periods.

5.) The present value of a cash amount:

a. Is always less than the future value.

b. Is always more than the future value.

c. Is the same as the future value.

d. Is the same as the actual cash value.