1)Using one or more of the methods presented in this chapter, calculate the future value of $3700 invested today at a 3 percent rate and held for 3 years.

$3811

$4164

$4043

$3925

2)Using one or more of the methods presented in this chapter, calculate the present value of $56000 to be received 14 years from today, discounted at 6 percent.

$27830

$26255

$23367

$24769

3)Daniel would like to save money to pay for his daughters college expenses. He estimates that he will need to accumulate $43000 over the next 10 years. How much will he need to invest at the end of each year for 10 years to achieve his savings goal if he can earn 7 percent per year on the investment and he makes end-of-year payments?

$2968

$2698

$3112

$2830

4)You are borrowing $63000 to buy a condo. If mortgage rates are currently at 9 percent and you take a 30-year loan with fixed payments, how much will your monthly mortgage payment be, assuming you make fixed payments at the end of each month?

$600

$648

$507

$553

5)Which of the following is an asset?

Student loans

Credit card balance

Home mortgage

Automobile

6)Liquid assets are

assets that are used for investment purposes.

assets related to water and mineral rights.

assets you can easily sell.

cash or near-cash assets that can be easily converted to cash without loss of value.