1. Future Value At age 25 you invest $1,100 that earns 7.25 percent each year. At age 35 you invest $1,100 that earns 10.25 percent per year. In which case would you have more money at age 60?
At age 25 invest $1,100 at 7.25 percent.
Both yield the same amount at age 60.
There is not enough information to determine which case earns the most money at age 60.
At age 35 invest $1,100 at 10.25 percent.
2. Moving Cash Flows What is the value in year 4 of a $1,400 cash flow made in year 8 when interest rates are 8.7 percent?
$983.89
$1,278.20
$718.28
$1,002.79