You have deposited $3,750 into an account that will earn an interest rate of 15% compounded semiannually. How much will you have in this account at the end of 14 years?

$26,533.90

$28,409.81

$32,671.28

$19,886.87

You decided to deposit your money in the bank at the beginning of the year instead of the end of the same year, but now you are making payments of $3,000 at an annual interest rate of 9%. How much money will you have available at the end of seven years?

$14,961

$30,085

$14,249

$15,304

Katie had a high monthly food bill before she decided to cook at home every day in order to reduce her expenses. She starts to save $1,410 every year and plans to renovate her kitchen. She deposits the money in her savings account at the end of each year and earns 5% annual interest. Katies savings are an example of an annuity. If Katie decides to renovate her kitchen, how much would she have in her savings account at the end of eight years?

$9,113.13

$14,137.46

$13,464.24

$11,444.60

If Katie deposits the money at the beginning of every year and everything else remains the same, she will save ____ by the end of eight years. OPTIONS 17,671.82, 13.464.24, 9568.79, 14137.46

Fedor is willing to invest $30,000 for three years, and is an economically rational investor. He has identified three investment alternatives (X, Y, and Z) that vary in their method of calculating interest and in the annual interest rate offered. Since he can only make one investment during the three-year investment period, complete the following table and indicate whether Fedor should invest in each of the investments.

Note: When calculating each investments future value, assume that all interest is earned annually. Do not round your intermediate calculations. The final value should be rounded to the nearest whole dollar.

Investment

Interest Rate and Method

Expected Future Value

Make this investment?

X

11%

Y

13% compound interest

Z

13% simple interest