How long will it take to triple $5,000? Assume that the interest rate is 5% per year compounded annually.

a.

22.5 years

b.

19 years

c.

18.5 years

d.

20.5 years

If you pay rent of $1,500 at end of each year over 5 years. If the annual interest rate is 10%, the present value of the years rent is:

a.

$6,854.76

b.

$6,254.79

c.

$5,686.18

d.

$5,678.21

What is the present value of a 5-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate?

a.

$1,348.48

b.

670.44

c.

842.91

d.

$1,169.56

You purchased a land that cost you $100,000, after 5 years your land is worth $150,000, what is the annual growth rate of the land:

a.

8.45%

b.

12.50%

c.

10%

d.

7.74%

How long will it take to double $10,000? Assume that the interest rate is 6% per year compounded annually.

a.

20.3 years

b.

11.9 years

c.

15.9 years

d.

10.5 years