1. Sam wants to invest $5,000 for 5 years. Which one of the following rates will provide him with the largest future value? A. 5 percent simple interest B. 5 percent interest, compounded annually C. 7 percent simple interest D. 7 percent interest, compounded annually E. none of the above 2. Jenny needs to borrow $16,000 for 3 years. The loan will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Jenny? A. 5 percent simple interest B. 5 percent interest, compounded annually C. 5 percent interest, compounded monthly D. 5 percent interest, compounded daily E. none of the above 3. Given an interest rate of zero percent, the future value of a lump sum invested today will always: A. remain constant, regardless of the investment time period. B. decrease if the investment time period is shortened. C. decrease if the investment time period is lengthened. D. be equal to $0. E. none of the above 4. Which one of the following statements is correct, all else held constant? A. There is an inverse relationship between the present value and the future value. B. The future value decreases as the time period increases. C. The present value decreases as the time period decreases. D. The interest rate is inversely related to the present value. E. none of the above 5. You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 8 percent interest. Approximately how long must you wait for your investment to double in value? A. 6 years B. 7 years C.8 years D. 9 years E. none of the above