1. You just opened a brokerage account. You plan to deposit $2,000 at the end of every future month until your account totals $500,000. You expect an annual interest rate of 12%. Your money is compounded monthly. How many years will it take to reach your goal?

18.60 years

6.7 years

2.8 years

10.50

2.5 years

2. Addison plans to loan $5,510 to her friend, who will pay a simple interest rate of 11% every year for the loan. If no payments are made and no further borrowing occurs between them for 2 years, then how much interest (in dollars) will Addison receive in year 2? Give your answer to two decimals

3. Finding the Present Value (PV), or ________________ evaluates the value today of cash flows that occur on some futures date or dates.

financing

budgeting

amortizing

discounting

compounding

factoring