Suppose you deposit $3,000 today into an account that will earn 5 percent interest. How much will your account be worth at the end of 30 years?

$199,317

$90,000

$4,500

$12,966

QUESTION 2

Joe wants to set one lump sum of money aside today to pay for his child's college education, which will occur in 15 years and cost $50,000. If the current 15 year interest rate is 7%, then how much does Joe need to set aside today?

$18,122

$3,333

$137,952

$18,797

QUESTION 3

If you can earn 7% interest, how long will it take you to double your investment?

14.0 years

35.0 years

10.2 years

5.3 years

9. What is the internal rate of return of an investment with the following cash flows?

year $

0 (2,000)

1 400

2 400

3 400

4 500

5 500

A. 10.0%

B. -39.0%

C.3.1%

D. 0.0%