1. Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? a. $205.83 b. $216.67 c. $228.07 d. $240.08 e $252.08 2. Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures? a $1,781.53 b. $1,870.61 $1,964.14 d. $2,062.34 e. $2,165.46 C. 3. Last year Rocco Corporation's sales were $225 million. If sales grow at 5% per year, how large (in Millions) will they be 5 years later? a. $271.74 b. $286.05 c. $301.10 d. $316.16 $331.96 e. a. 4. Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today? $585.43 b. $614.70 $645.44 $677.71 e. $711.59 c. d. a. b. c. d. 5. Suppose a U.S. treasury bond will pay $2,500 five years from now. If the going interest rate on 5-year treasury bonds is 4.25%, how much is the bond worth today? $1,928.78 $2,030.30 $2,131.81 $2,238.40 $2,350.32 e. 6. Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $5,000. What interest rate would you earn if you bought this bond at the offer price? a. b. C. d. e. 3.82% 4.25% 4.72% 5.24% 5.77%