1) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?
A) 6%
B) 5%
C) 7%
D) 8%
2) You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your investment, how much will you sell the land for in 10 years?
A) $25,000
B) $31,060
C) $38,720
D) $34,310
3) If you place $50 in a savings account with an interest rate of 7% compounded weekly, what will the investment be worth at the end of five years (round to the nearest dollar)?
A) $72
B) $70
C) $71
D) $57
4) Shorty Jones wants to buy a one-way bus ticket to Mule-Snort, Pennsylvania. The ticket costs $142, but Mr. Jones has only $80. If Shorty puts the money in an account that pays 9% interest compounded monthly, how many months must Shorty wait until he has $142 (round to the nearest month)?
A) 73 months
B) 75 months
C) 77 months
D) 79 months
5) If you want to have $1,700 in seven years, how much money must you put in a savings account today? Assume that the savings account pays 6% and it is compounded quarterly (round to the nearest $10).
A) $1,120
B) $1,130
C) $1,110
D) $1,140
6) If you want to have $1,200 in 27 months, how much money must you put in a savings account today? Assume that the savings account pays 14% and it is compounded monthly (round to the nearest $10).
A) $910
B) $890
C) $880
D) $860
7) You bought a painting 10 years ago as an investment. You originally paid $85,000 for it. If you sold it for $484,050, what was your annual return on investment?
A) 47%
B) 4.7%
C) 19%
D) 12.8%
8) You deposit $5,000 today in an account drawing 12% compounded quarterly. How much will you have in the account at the end of 2 1/2 years?
A) $7,401
B) $5,523
C) $7,128
D) $6,720
9) How many years will it take for an initial investment of $200 to grow to $544 if it is invested today at 8% compounded annually?
A) 8 years
B) 10 years
C) 11 years
D) 13 years
10) If you purchased a share of Mico.com stock on March 1, 1993 for $45 and you sold the stock at $168 on February 28, 1998, what was your annual rate of return on the stock?
A) 83%
B) 75%
C) 20%
D) 30%
E) 50%
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