1) You are looking at an investment that will pay $11,250 in 6 years if you invest $10,000 today. What is the implied rate of interest (assuming annual compounding)?

a) 3.96%

b) 12.5%

c) 1.98%

d) None of the above

2) Suppose you are offered an investment that will allow you to double your money in 5 years. You have $15,000 to invest. What is the implied rate of interest?

a) 8.45%

b) 7.18%

c) 14.87%

d) None of the above

3) Suppose you have a 2-year old daughter and you want to provide $100,000 in 17 years towards her college education. You currently have $15,000 to invest. What interest rate must you earn to have the $100,000 when you need it?

a) 11.02%

b) 11.81%

c) 9.87%

d) None of the above.