1. A business acquaintance promises to deliver a $20 bill to you one year from today. How much should you be willing to pay today for this promise?
A) Less than $20
B) More than $20
C Excatly $20
2. What is the present value of $1,000 received three years from today if interest rates are currently 6 percent?
3. What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?
4. The Product Rule of Exponents says that when multiplying two powers that have the same base, you need to ________.
A) Divide the exponets
B) Multiply the exponets
C) Subtract the exponets
D) Add the exponets
5. The fifth root of fifteen is equal to ________.
A) 15 raised to the power of 15
B) 1 raised to the power of 1/5
C) one fifthteenth of 15
D) one fifth of 15