1) If you deposit $2,000 into an account and it earns 6% interest, how much will you have in 11 years 1) _ A) $3,796.60 B) $27,943.29 C) $3,320.00 D) $2,000.00 2) If you deposit $2000 into an account every year and it earns 5% interest, how much will you have in 11years 2) A) $3,420.68 B) $28,413.57 C) $22,000.00 D) $23,100.00
3) You want to have $10,000 for a down payment on a house in 5 years, how much should you put into an
account today, assuming you earn 4 percent
3) A) $10,000.00 B) $9,600.00 C) $2,000.00 D) $8,219.27 4) You hit the lottery! You get offered $10 million now or $1 million a year for 13 years. Assume a 3percent interest rate. Which would you choose and why 4) A) Take the $1 million per year since $13 million is worth more than $10 million
B) Take the $1 million per year since those payments have a higher present value than the $10 million
C) Take the $1 million per year since those payments have a lower present value than
the $10 million
D) Take the $10 million those the present value of the payments is less than the $10
million
5) If you put $10,000 a year into your retirement account and want to have a million dollars in 35 years,
what interest rate will you need to earn?
5) A) 10% B) 3.68% C) 5.49% D) 6.72% 6) If you want to have $2,000,000 in your retirement account in 40 years, and you can earn 8%, how much will you need to put in each year? 6) A) $7,720.32 B) $50,000.00 C) $10,549.61 D) Zero
7) If you want to save $20,000 for your child’s education, and you can invest $1,000 per year and can earn7%, approximately how long will it take you to save that much?
6) _
A) 18 years B) 8 years C) 13 years D) 20 years

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