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You deposit $1,000 today in a savings account that pays 3.5% interest, compounded annually. How much will your account be worth at the end of

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You deposit $1,000 today in a savings account that pays 3.5% interest, compounded annually. How much will your account be worth at the end of 25 years? $2, 245.08 $2, 363.24 $2, 481.41 $2, 605.48 $2, 735.75 Suppose a State of California municipal bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5%, how much is the bond worth today? $651.60 $684.18 $718.39 T $754.31 $792.02 How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%? $438.03 $461.08 $485.35 $510.89 $537.78 Suppose the U.S. Treasury offers to sell you a bond for $747.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price? 4.37% 4.86% 5.40% 6.00% 6.60%

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