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1 . Which of the following investments will have the highest future value? A . $ 1 , 3 0 0 invested at an annual

1. Which of the following investments will have the highest future value?
A. $1,300 invested at an annual interest rate of 10%(compounded quarterly) for 10 years
B. $1,300 invested at an annual interest rate of 10%(compounded semi-annually) for 10 years
C. $1,300 invested at an annual interest rate of 10%(compounded annually) for 10 years
D. $1,300 invested at an annual interest rate of 10%(compounded continuously) for 10 years 2. Your firm has earnings of $3.75/ share. Over 5-years earnings will increase to $9.00. What is the earnings growth rate?
(Round to the nearest 110 percent.)
A.18.5%
B.19.1%
C.21.3%
D.15.7%3. For two years (24 months) you deposit $500 at the beginning of each month. After 2-years you $13,000 in your account. If
the bank compounds interest monthly, what annual interest rate will you have earned (multiply the monthly rate by 12 to
get the annual rate)?
A.8.00%
B.8.82%
C.8.40%
D.7.62%4. Which of the following is true of the future value of an investment?
A. The lower the interest rate, the higher the future value of an investment.
B. The lower the present value of an investment, the higher the future value of an investment.
C. The higher the interest rate, the higher the future value of an investment.
D. The lower the number of compounding periods, the higher the future value of an investment.

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