QUESTION 1
If Sam lends his cousin, Tony, $100 for 9 years at 7% interest compounded
annually, how much will his cousin owe him at the end of 8 years?
$158.20
$125.90
$157.13
$171.82
QUESTION 2
1 points
Aldis received $7,200 from his grandmother as his eighth grade graduation
gift. The money is invested at 8% compounded annually and Aldis
plans on leaving the money there for 4 years until he is ready to begin
college. How much money will Aldis have when he begins college?
$9,796
$9,972
$7,992
$7,929
QUESTION 3
1 points
When the financial planning problem involves seeking a future value, the
periods are referred to as:
compounding
periods
multiple periods
discounting periods
exponential periods
1 points
QUESTION 4
Timea’s RRSP, which currently earns 7%, will be worth $241,000 by her
retirement in 10 years time. To the nearest $100, how much does she
have in her RRSP today?
$124,000.
$131,000.
$122,500.
$120,500.
QUESTION 5
1 points
All of the following factors must be known in order to calculate the future
value of a single sum, EXCEPT:
the interest rate to
be earned
the present value of
the sum
the amount to be
deposited
each year
the number of years
the sum will
be left on
deposit
QUESTION 6
1 points
As a birthday gift, Augustino’s godfather invested $5,000 in an account
earning 8.75% interest. If the account balance is currently $9,781, for
how long has Augustino had the account?
7.8 years
8.0 years
8.2 years
7.9 years
1 points
QUESTION 7
Zena wants to buy a sound system that costs $2,322. She plans to finance
the purchase by investing $1,800 in an account earning 8.5% annual
interest. If she does this, approximately how many years will it take
for her account to be worth $2,322?
2.98 years
