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You deposit $500 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 $500 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? Select one: a. $1, 122.54 b. $1, 302.74 c. $1, 181.62 d. $1, 240.70 Suppose a U.S. treasury bond will pay $2, 500 five years from now. If the annual interest rate on 5-year treasury bonds is 4.25% (compounded annually), how much is the bond worth today? Select one: a. $1, 928.78 b. $2, 131.81 c. $2, 030.30 d. $2, 238.40 Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be made until the bond matures 10 years from now, atwhich time it will be redeemed for $5,000. What annual interest ratewould you earn if you bought this bond at the offer price? (assumeannual compounding) Select one: a. 3.82% b. 5.24% c. 4.72% d. 4.25%

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