________ 1. You currently have $13,820 in your investment account. How long will you have to wait until your account is worth $24,000 if you can earn an annual return of 7.5 percent?

a. 7.63 years b. 7.78 years c. 8.04 years d. 8.28 years

________ 2. Your savings account is currently worth $4,600. The account pays 2.6 percent interest compounded annually. How much will your account be worth 3 years from now?

a. $4,922.56 b. $4,968.21 c. $4,978.91 d. $4,998.22

________ 3. Alex wants to have $48,000 five years from now to buy a new car. He wants to make one deposit today to fund this expenditure. How much does he have to deposit if he can 4.8 percent per year on his savings?

a. $24,908.16 b. $35,255.20 c. $37,969.50 d. $38,211.40

________ 4. Thirty years ago, your parents opened an investment account with a single deposit of $2,000. They never added any additional money to this account. Today, the account is worth $25,814.66. What average annual

rate of return did they earn on their investment?

a. 8.90 percent b. 8.96 percent c. 9.00 percent d. 9.12 percent

________ 5. Suzie invested $700 with the Simpleton Bank 4 years ago. The bank pays 3 percent simple interest on its savings accounts. What is the total amount of interest she has earned on her account over the past 4 years?

a. $80.00 b $82.19 c. $84.00 d. $87.86