1. When you were born, you received $100 which you invested at 7.5% interest, compounded annually. That investment is now worth $3,000. How many years have past?
a. 54
b. 47
c. 64
d. 58
e. 52
2. Choosing a higher discount rate increases the calculated present value.
True
False
3. One year ago, you invested $5,050. Today, your investment is worth $5,800. What rate of interest did you earn?
a. 16.0%
b. 22.1%
c. 14.9%
d. 23.5%
e. 20.0%
4. Today, you earn a salary of $75,500. What was your annual salary be five years ago if you receive annual raises of 3.6%?
a. $62,230
b. $63,441
c. $63,263
d. $58,213
e. $62,844