Question 21

When you were born, you received $100 which you invested at 7.5% interest, compounded annually. That investment is now worth $3,000. How many years have past?

Select one:

a. 54

b. 47

c. 64

d. 58

e. 52

Question 22

Choosing a higher discount rate increases the calculated present value.

Select one:

True

False

Question 23

One year ago, you invested $5,050. Today, your investment is worth $5,800. What rate of interest did you earn?

Select one:

a. 16.0%

b. 22.1%

c. 14.9%

d. 23.5%

e. 20.0%

Question 24

Today, you earn a salary of $75,500. What was your annual salary be five years ago if you receive annual raises of 3.6%?

Select one:

a. $62,230

b. $63,441

c. $63,263

d. $58,213

e. $62,844