Student Name: 33. The time value of money is created by A) the ence of profitable investment altermatives and interest rates. value of money consideration. B) the fact that the passing of time increases C) the elimination of the opportunity cost as a D) the fact that the saving Answer: value of saving money for tomorrow could be more or less than spending it today. At 8% compounded annually, how long will it take S750 to double? A) 65 years B) 48 months C) 9 years D) 12 years Answer A)9At what rate must 5400 be compounded annually for it to grow to 5716.40 in 10 years? B)5% C)7% D)8% Answer: 36. A friend plans to buy a big-screen TV/entertainment system and can afford to set aside s1.320 toward the purchase today. If your friend can earn 50% compounded yearly, how much can your friend spend in four years on the purchase? Round off to the nearest $1. A) $1,444 B) $1,604 C) $1,764 D) $1,283 Answer 37, If you place $50 in a savings account with an interest rate of 7% compounded weekly, what will the investment be worth at the end of five years (round to the nearest dollar)? A) $72 B) $70 C) $71 D) $57 Answer 38. If you want to have $1,700 in seven years, how much money must you put in a savings account today? Assume that the savings account pays 6% and it is compounded quarterly (round to the nearest S10). A) $1,120 B) $1,130 C) $1,110 D) $1,140