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%

1) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?

  1. A) 6%
  2. B) 5%
  3. C) 7%
  4. 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?

  1. A) $25,000
  2. B) $31,060
  3. C) $38,720
  4. 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)?

  1. A) $72
  2. B) $70
  3. C) $71
  4. 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)?

  1. A) 73 months
  2. B) 75 months
  3. C) 77 months
  4. 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).

  1. A) $1,120
  2. B) $1,130
  3. C) $1,110
  4. 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).

  1. A) $910
  2. B) $890
  3. C) $880
  4. 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?

  1. A) 47%
  2. B) 4.7%
  3. C) 19%
  4. 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?

  1. A) $7,401
  2. B) $5,523
  3. C) $7,128
  4. 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?

  1. A) 8 years
  2. B) 10 years
  3. C) 11 years
  4. 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?

  1. A) 83%
  2. B) 75%
  3. C) 20%
  4. D) 30%
  5. E) 50%