You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $2,000 today and both accounts have an annual interest rate of 9 percent. How much more interest will you receive in the 11th year in the account that pays compound interest?

Multiple Choice

• $259.80

• $263.29

• $180.00

• $258.98

• $246.13

A company has a pension liability of $430,000,000 that it must pay in 28 in years. If it can earn an annual interest rate of 3.8 percent, how much must it deposit today to fund this liability?

Multiple Choice

• $55,285,852.71

• $132,284,152.61

• $145,795,863.94

• $122,062,226.83

• $151,336,106.77

You need to have $20,000 for a down payment on a house 4 in years. If you can earn an annual interest rate of 3.1 percent, how much will you have to deposit today?

Multiple Choice

• $17,168.67

• $17,361.65

• $17,700.90

• $17,162.00

• $16,151.74