9. Your uncle needs $5,000,000 upon retirement in 25 years to live comfortably. He can invest $75,000 a
year to his retirement. What interest rate would his investment need to appreciate at in order for him to
meet his goals?
A. 7.4%
B. 22.1%
C. 12.8%
D. 20.0%
E. 5.7%
Answer: A
[Group 6]
10.
If you invest $1000 today, assuming it grows at 7% per year (tax-free), how much will this be worth in
five years?
A.
$1,569
B.
$1,400
C.
$1,500
D.
$1,251
E.
$1,403
Answer:
E
11.
If you invest $1,000 today at a rate of 8% (tax-free), how much will it be worth 10 years from
now?
A.
$2,143.59
B.
$8,000.00
C.
$2,158.93
D.
$14,486.56
E.
$215.89
Answer:
C
12.
If you invest $1,000 today at a rate of 10% (tax-free), how much will it be worth 8 years from
now?
A.
$2,143.59
B.
$2,593.74
C.
$8,000.00
D.
$1,143.59
E.
$2,158.92
Answer: A
[Group 7]
13.
Which of the following is true concerning the difference between simple and compound interest?