1. Future Value Compute the future value in year 6 of a $370 deposit in year 3 and another $170 deposit at the end of year 5 using a 12% interest rate.
$693.60
$710.22
$908.40
$1,065.86
2. What is the present value (PV) of an investment that pays $ 110000 every year for four years if the interest rate is 5% APR, compounded quarterly?
a) 505,960
b) 389,200
c) 428,120
d) 467,040
3. Compound Frequency Payday loans are very short-term loans that charge very high interest rates. You can borrow $1,600 today and repay $1,872 in two weeks. What is the compound annual rate implied by this 17 percent rate charged for only two weeks?
17.40%
18.45%
5,826.97%
20.40%