At what rate must $287.50 be compounded annually for it to grow to $650.01 in 14 years?

5 percent

8 percent

6 percent

7 percent

You believe in the power of compounding and decide to save $1 per day by avoiding the purchase of a
soda. You deposit the $1 at the end of each day in a bank account that pays 8% interest compounded
daily. You are going to take a trip in 20 years with the money you have accumulated. How much money
will you have in 20 years, assuming 365 days per year?

$12,438

$7,500

$18,032

$22,456

D'Anthony borrowed $50,000 today that he must repay in 15 annual end-of-year installments of $5,000.
What annual interest rate is D'Anthony paying on his loan?

5.556%

33.33%

3.33%

2.22%

A bond maturing in 10 years pays $80 each year (including year 10) and $1,000 upon maturity. Assuming
10 percent to be the appropriate discount rate, the present value of the bond is

$1,000.00.

$1,785.67.

$877.11.

$416.39.