8 Questions | Total Attempts: 30

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• 1.
How much interest does a \$318 investment earn at 9% over one year?
• A.

\$28.62

• B.

\$286.2

• C.

\$2862

• D.

2.86

• 2.
You invested \$52,400 at 6% compounded annually for 5 years. What is your total return on this investment?
• A.

\$70,123.02

• B.

\$17,000

• C.

\$7,012

• D.

\$701

• 3.
Your 2 year investment of \$5,300 earns 2.9% and is compounded annually. What will your total return be?
• A.

\$5,611.86

• B.

\$200

• C.

\$350

• D.

\$6000

• 4.
Semiannually is the same as  2 periods in a year.
• A.

True

• B.

False

• 5.
Principal is the amount of money at the end of period.
• A.

True

• B.

False

• 6.
M = 1000 (1 + 0.05)3 = \$1572.62.
• A.

True

• B.

False

• 7.
Interest Rate: 1% each yearStarting Balance: \$147Time Passed: 6 yearsHow much interest has accrued if we are using simple interest?
• A.

\$8.82

• B.

\$6.52

• C.

\$9.15

• D.

\$156

• 8.
Find the compound amount on the principal \$20,000 borrowed at 6% compounded annually for 3 years.
• A.

\$23820.32

• B.

\$3820

• C.

\$3000

• D.

\$800