Thomas invests 121 in an account that pays 6 percent simple


1. Thomas invests $121 in an account that pays 6 percent simple interest. How much money will Thomas have at the end of 4 years?

$144.11

$150.04

$157.30

$142.78

$152.76

2. Beatrice invests $1,430 in an account that pays 5 percent simple interest. How much more could she have earned over a 6-year period if the interest had compounded annually?

$23.64

$33.93

$57.34

$344.02

$40.72

3. What is the future value of $3,018 invested for 8 years at 5.4 percent compounded annually?

$3,724.62

$4,596.68

$7,001.14

$6,855.47

$3,734.93

4. What is the present value of $12,400 to be received 3 years from today if the discount rate is 5 percent?

$10,191.90

$11,247.17

$7,440.00

$10,711.59

$10,631.00

5. Bob bought some land costing $15,590. Today, that same land is valued at $45,217. How long has Bob owned this land if the price of land has been increasing at 6 percent per year?

17.40 years

16.42 years

20.45 years

18.27 years

19.29 years

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Financial Management: Thomas invests 121 in an account that pays 6 percent simple
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