________ 11. Your grandmother invested $3,000 in an account in your name several years ago. The account has paid an

average annual rate of 4.5 percent. Today, the account is worth $8,265. How long ago did your grandmother

invest this money for your benefit?

a. 11.51 years b. 14.80 years c. 17.95 years d. 23.02 years

________ 12. This morning, you purchased a rare coin for $12,500. The coin has been appreciating in value at an annual

rate of 9.6 percent and is expected to continue doing so. How long will it be until the coin is worth $20,000?

a. 5.13 years b. 5.42 years c. 5.63 years d. 5.87 years

________ 13. You are planning a trip around the world that is scheduled to begin 6 years from now. The estimated cost is

$45,000. How much do you have to deposit today in one lump sum to fully fund this trip if you can earn 7.5

percent per year on your investment?

a. $27,901.38 b. $29,158.27 c. $32,406.18 d. $33,333.33

________ 14. The Corner Art Gallery purchased a painting for $68,000 two years ago. Today, the painting was resold for

$179,900. What annual rate of return did the gallery earn on this painting?

a. 18.97 percent b. 27.68 percent c. 53.80 percent d. 62.65 percent

________ 15. Bridgewater Bank pays 4 percent simple interest on its savings accounts. Tidewater Bank pays 4 percent

interest, compounded annually on its savings accounts. Four years ago, Lew invested $3,000 in each bank.

What is the difference, if any, in his account balances today?

a. $17.16 b. $29.58 c. $34.06 d. $35.42