1. What is the inflation rate if it takes 14 years for prices in the economy to double after 14 years? Assume an average annually compounding rate. Round answer to the nearest tenth of a percent?.
A) 5.5% B) 5.0% C) 5.1% D) 4.8%
2. You need to save $500.00 over the next 9 years, how much should be deposited monthly if the investment earns 5% interest compounded at the beggining of each month? What if the payment schedule was changed to the end of each month?
A) $3324.86, $34011.22 B) $2776.69, $2781.55 C) 3,025.39, $3662.98 D) $3660.05, $3,675.30