1.A $2,500 five-year investment certificate earns 4.2% compounded monthly. How much

of the future value is interest?

A. $3083.06 B. $2543.75 C. $583.06 D. $43.75 E. none of the above

2.A non-interest bearing promissory note has a face value of $950. Find the proceeds of this note if it is discounted 3 years before its maturity date at 8% compounded quarterly.

A. $719.98 B. $771.65 C. $725.67 D. $657.22 E. none of the above

3.What is the effective rate of interest if $100 grows to $150 in six years compounded quarterly?

A. 6.8152% B. 6.9913% C. 5.4416% D. 6.1445% E. none of the above