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Question 1 Assume that you purchase a 6-year, 8% savings certificate for $1,000. If interest is compounded annually, what will be the value of the certificate when it matures?

$2,035 $1,900 $1,587 $1,634

Question 2 Your parents' small business purchases undeveloped land for $150,000 and, after a few years, forgets that they own it. You inherit the land after 50 years. What is the land worth if it returned 5.5% annually over the 50 years?

$1,989,888 $2,181,294 $2,233,211 $2,212,234

Question 3 you deposit $1.50 in the bank, the year is 2017. Assuming you were able to time travel to the year 3017, how much would you have if the bank paid you 2.5% annually?

$856.3 million $1.1 trillion $3,345 $79.4 billion

Question 4 you deposit $1.50 in the bank, the year is 2017. Assuming you were able to time travel to the year 3017, how much would you have if the bank paid you 2.5% annually? Assume that you were not able to take advantage of the magic of compounding and the bank simply mailed you a check for the interest amount each year, which was put in a safe deposit box.

$5,500 dollars $39 dollars $79.4 billion $39 million

Question 5 Assume that you purchase a 6-year, 8% savings certificate for $1,000. If interest is compounded semi-annually, what will be the value of the certificate when it matures?

$1,400 $1,625 $1,601 $1,587

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