Suppose you invest $1000 into a mutual fund that is expected to earn a rate of return of 10%. The amount of money will you have in ten years is closest to which of the following? The amount you will have in 50 years is closest to which of the following?

1 $386; $9

2 $3138; $ 1,311,892

3 $2594; $45,259

4 $2594; $117,391

Jeff has the opportunity to receive lump-sum payments either now or in the future. Which of the following opportunities is the best, given that the interest rate is 7% per year?

a. one that pays $1,800 in ten years

b. one that pays $1,500 in five years

c. one that pays $1,000 now

d. one that pays $1,200 in two years

Sara wants to have $500,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 8%, to ensure that she has $500,000 in 20 years time.

1. $231,480

2. $180,884

3. $144,616

4.$107,274

Helen is saving to start a business. If she invests $10,000 in a savings account now, which of the following is the minimum interest rate required to ensure that she has $25,000 in her account in ten years time?

a. 10.2%

b. 9.6%

c. 2.5%

d. 6.4%