31) Your daughter has been saving $500 a year for each of the last 10 years for her "sweet sixteen" party. How much is now in her party account (at the end of the tenth year) if she earned an annual rate of return of 6%? A) $6,590.40 B) $7,680.04 C) $5,300.00 D) $8,714.84 32) If your bank pays you interest in the form of an annual rate of return of 10% over each of the next five years, how much will your balance be if you make annual deposits of $400? A) $2,248.37 B) $2,644.20 C) $2,516.31 D) $2,442.04 33) Using the Rule of 72, approximately how long will it take to double your money if you invest it at 8% compounded annually? A) 6 months B) 9 months C) 6 years D) 9 years E) It depends on the amount of the initial investment. 34) Using the Rule of 72, if it will take approximately 12 years for your money to double, at what annually compounded interest rate is it invested? A) 6% B) 8% C) 9% D) 12%

35) You invest $1,000 at age 20 at an annual rate of return of 12%. By the time you are 62 you will have amassed approximately A) $47,040. B) $67,214. C) $116,723. D) $504,000. 36) Describe the effects and benefits of compound interest. 37) Why is the time value of money an important concept in financial planning? 38) What are some practical uses of present and future values? 39) A compound interest table is useful in solving a time value of money problem. Name the variables involved. 40) You decide to save for retirement by investing $10,000 a year in an account that will earn a 6% annual rate of return. How much will you have in the account when you retire in 45 years? A) $450,000 B) $3,277,222 C) $2,127,435 D) $1,256,743