# HW2.docx - Question 1 3 out of 3 points You invest \$1,000...

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Question 1 3 out of 3 points You invest \$1,000 in an account that pays interest at 12 percent annual rate. How much would your investment grow to in 5 years? Selected Answer: 1,76 2 Question 2 3 out of 3 points You invest \$1,000 in an account that pays interest at 12 percent annual rate, compounded quarterly. How much would your investment grow to in 5 years? Selected Answer: 1,80 6 Question 3 3 out of 3 points You invest \$1,000 in an investment that grew to \$60,000 in 35 years. What annual rate of interest did you earn? Selected Answer: 12.41 % Question 4 3 out of 3 points You plan to purchase a BMW sedan in six years for \$85,000. You have saved \$30,000 for the car and plan to invest this money to purchase the car. What rate of interest would you have to earn to be able to purchase the car after six years? Selected Answer: 19 % Question 5 3 out of 3 points You plan to purchase a BMW M5 sedan for \$85,000. You have saved \$30,000 for the car and plan to invest this money to purchase the car. How many years would you have to wait if you can earn 12 percent annual rate, compounded quarterly? Selected Answer: 8.8 1 Question 6 3 out of 3 points How long would it take to quadruple your money at an annual rate of 8 percent?

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