7. An amount is deposited into a bank account that pays 8%, compounded quarterly for 5 years. What number of periods and rate would be used to find the future value of this investment?

a. 20 periods at 2 percent c. 10 periods at 4 percent

b. 5 periods at 8 percent d. 20 periods at 4 percent

8. How much must be invested today, at 8%, compounded semi-annually, to be able to withdraw $1,000 each 6 months for 5 years?

a. $5,867 c. $12,006

b. $8,111 d. $3,993

9. What is the future value of $400 deposited today at 12% compounded monthly for 2 years.

a. $501.60 c. $504.80

b. $506.80 d. $508.00

10. If $1,000 is deposited each year for 5 years in an account that earns 8% compounded annually, how much will be in the account at the end of the five years?

a. $1,469 b. $5,867

c. $1,477 d. $9,549