1. Your aunt offers you a choice of $25,000 in 50 years or $100 today. If money is discounted at 12%, which should you choose?

2. How much would you have to invest today to receive: a. $12,000 in six years at 10%. b. $15,000 in fifteen years at 9% c. $5,000 each year for ten years at 3%. d. $40,000 each year for forty years at 6%.

3. Your roommate invests $1,000 in a mint condition Mickey Mantle rookie baseball card. He expects the card to increase in value by 8% a year for the next five years. After that, he anticipates a 10% annual increase for the next three years. At the end of eight years, he plans to sell it. What is the projected value of the card at that time?

4. At a growth (interest) rate of 5% annually, how long will it take for a sum of money to double? To triple? (Select the year that is closest to the correct answer.)

5. Determine the amount of money in a savings account at the end of four years, given an initial deposit of $5,000 and an 8% annual interest rate when interest is compounded:

a. annually.

b. semiannually.

c. quarterly.