If you borrow $100 today and repay with 6% simple interest one year from now, which of the following would be a correct time line entry?

• A.

  -$100 at year zero.

• B.

  -$106 at year one.

• C.

  $106 at year one.

• D.

  $100 at year one.

You invest $600 an an annual rate of 7% for fifteen years. How much more interest would you earn in year 11 with compound vs. simple interest and for the whole 15 years?

• A.

  82.62;82.62;452.42

• B.

  42.00;42.00;1,230.00

• C.

  $40.62; 425.42

• D.

  1,214.54;1,214.54;101.56

You plan to buy a new car when you graduate in 2 years. The car you want currently costs $25,000 and car prices are expected to increase at an annual rate of 4% per year. What will your car cost by the time you graduate? Suppose you wait another 3 years after graduation to make your purchase?

• A.

  25,400.;25,400.;27,400

• B.

  26,854;26,854;29,668

• C.

  28,050;28,050;31,653

• D.

  27,040;27,040;30,416

If you can earn 6% per year, how much would you have to invest today to be able to purchase the car in #3 in two years? In five years?

• A.

  24,066;24,066;22,729

• B.

  25,060;25,060;27,550

• C.

  22,080;22,080;24,007

• D.

  22,729;22,729;24,066

A widget seller sold 1,035 widgets in 2007 and 687 in 2015. What was the annual rate of sales of widgets over this period?

• A.

  -6.33%

• B.

  -4.99%

• C.

  4.99%

• D.

  6.33%

A new CEO promises to increase company sales by 9% per year from its current level of $3,458,613 to a target level of $12 million. How long would it take for the new CEO to achieve his goal?

• A.

  8 years

• B.

  10 years

• C.

  12 years

• D.

  14 years

If your investment doubles in 6 3/4 years, what approximate annual rate of return would you have earned? If you could earn an annual rate of 7.50%, approximately how long would it take for your investment to double?

• A.

  9.60%; 10.67 years

• B.

  10.67%; 9.60 years

• C.

  13.50%; 9.20 years

• D.

  9.20%; 13.50 years