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1. Future Value At age 25 you invest $2,000 that earns 9.5 percent each year. At age 35 you invest $2,000 that earns 12.5 percent per year. In which case would you have more money at age 60?
A-Both yield the same amount at age 60.
B-There is not enough information to determine which case earns the most money at age 60.
C-At age 35 invest $2,000 at 12.5 percent.
D-At age 25 invest $2,000 at 9.5 percent.
2. Two Years Future Value What is the future value of $3,000 deposited for two years earning 7% interest rate annually?
$3,000
$3,435
$435
$6,435
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