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