1. Suppose a $2300 investment earns 5.2% compounded annually for 2 years. Then, suppose the interest rate is

doubled. Which statement is true?

a.The total interest earned doubles. b. The amount more than doubles. c. The total interest earned increases but is less than double. d. The total interest earned more than doubles.

2. A $600 Guaranteed Investment Certificate (GIC) earns 10.7% compounded daily for 3 years. Determine the

amount of the investment.

3. A $2400 bond earns 8.2% compounded monthly for 8 years. Determine the amount of the investment.

4. A $600 bond earns 6.6% compounded semi-annually for 9 years. Determine the interest earned on the

investment.

5. Rachel has $3000 to invest for 5 years. Without calculating, choose the investment that will have earned the

most interest at maturity.