Question

1. You are going to deposit $3,400 in an account that pays .40 percent interest compounded monthly. How much will you have in 5 years?

a. $4,320.18

b. $4,337.46

c. $4,298.19

d. $4,324.50

e. $4,302.97

2. Your bank will pay you an interest rate of .102 percent per week. You want to have $22,500 in 10 years. How much will you have to deposit today? Assume 52 weeks per year.

a. $13,418.45

b. $13,419.42

c. $13,536.16

d. $21,338.27

e. $13,241.89

3. You are going to deposit $2,700 in an account that pays .53 percent interest compounded quarterly. How much will you have in 7 years?

a. $3,114.20

b. $3,130.71

c. $3,134.19

d. $3,127.08

e. $3,147.30

3. You want to have $92,000 in 18 years to help your child attend college. If you can earn an annual interest rate of 4.8 percent, how much will you have to deposit today?

a. $34,501.45

b. $17,829.65

c. $37,750.57

d. $36,314.26

e. $39,562.59

Answer 1

Future value = Present value x (1+i=n) ant Value in 5 years = fv = $4,320.18 $3400 X (1+0.4%)^(12*5)