Solving for Rates What annual rate of return is implied on a $1,500 loan taken next year when $3,000 must be repaid in year 9?

8.01% '

11.11%

9.05%

12.50%

One Year Future Value What is the future value of $400 deposited for one year earning 9% interest rate annually?

$36

$400

$436

$836

Moving Cash Flows What is the value in year 10 of a $500 cash flow made in year 5 when the interest rates are 9 percent?

$725.00

$1,183.68

$769.31

$211.21

Compounding with Different Interest Rates A deposit of $750 earns interest rates of 10.5 percent in the first year and 7.5 percent in the second year. What would be the second year future value?

$829.43

$1,635.00

$890.91

$885.00

Future Value At age 30 you invest $3,900 that earns 10.75 percent each year. At age 35 you invest $3,900 that earns 13.75 percent per year. In which case would you have more money at age 60?

At age 35 invest $3,900 at 13.75 percent.

At age 30 invest $3,900 at 10.75 percent.

Both yield the same amount at age 60.

There is not enough information to determine which case earns the most money at age 60.