11. Faith invest 4500$ in a account that pays 4% simple interest. How much money will she have at the end of 8 years ?

a) 6159

b)6122

c)5940

d)5367

e) 4680

12. What is the future value of 7540$ invested at 6,5% interest for seven years ?

a) 10330.45 $

b)11717.06$

c)11041.26$

d)11001.93$

e)11337.37$

13. The concept that a dollar received today is worth more than a dollar received tomorrow is referred to as the :

a) Time value of money

b) future value of money

c) Compound value

d) present value

e)simple interest value

14. An account was opened with 1000$ 3 years ago. Today, the account balance is 1157.63$ if the account earns simple interest, how long will it take until the account has earned a total of 225$ in interest?

a) less than one more year

b) between one and two years

c) between three and four more years

d) between tow and three more years

e) between four and five more years

15. Alpha, is saving money to build a new factory six years ago they set aside 250 000$ for this purpose. Today, y=that account is worth 306 958$ what Arte of interest is Alpha earning on this money ?

a) 3.43%

b)3.52%

c) 3.45%

d)3.55%

e) 3.48%

16. The current value of future cash flows discounted at the appropriate discount rate installed the :

a) present value

b) principal value

c)simple interest rate

d) future value

e) compound interest rate

17 : On the day you entreated college you borrow 12 000$ from your local bank. The terms of the loan include an interest rate of 5.45%. The terms stipulated that the Principale is due in full one year after you graduate. Interest is to be paid annually at the end of each year. Assume that you complete college in four years. How much will you pay the bank one year after you graduate ?

a) 12 000$

b)15646.39$

c)12654$

d)3419.59$

e)2806.27$

18 . Today you turn 21, your birthday wish is to turn a millionaire by your 50th birthday. In an attempt to reach this goal, you decide to save 20$ a day, every day until you turn 50. You opened an investment account and deposited your first 20$ at the end of your day. What rate of return must you earn to a chive this goal? Interest us compounded daily.

a) 9.11

b) 9.23

c)8.89

d)9.04

e)9.19

19. You have 2500$ that you want to use to open a savings account you have found five different accounts that are acceptable to you. All you have to do now is determine which account you want to use such that you can earn the highest rate of interest possible. Which account should you use based upon the annual percentage rates quoted by each bank ?

Account A 3.75%, compounded annually

Account B 3.70%, compounded monthly

Account C 3.70% compounded smiannually

Account D 3.65% compounded continuously

Account E 3.66 % compounded quarterly