7. Terry is calculating the present value of a bonus he will receive next year. The process he is using is called

A. Reducing.B. Compounding.C. Accumulating.D. Discounting.

8. Alex invested $10,500in an account that pays 6 percent simple interest. How much money will he have at the end of four years?

A. $12,650

B. $12,967

C. $13,020

D. $13,256

9. __________ is the process of determining the future value of an investment.

A. Compounding.B. Simplifying.C. Aggregation.D. Discounting.

10. True or False. The amount of compound interest you earn is constant each year, whereas the amount of simple interest gets bigger every year

11. Travis invested $8,250 in an account that pays 4 percent simple interest. How much more could he have earned over a 7 year period if the interest had compounded annually?

A. $341.41

B. $296.44

C.$302.16

D. $266.67

12. What is the future value of $11,600 invested for 17 years at 7.25 percent compounded annually?

A. $32,483.60

B. $27,890.87

C. $38,125.20

D. $41,009.13