Payment you will have to make in one year will be

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Reference no: EM132071457

1. If you borrow $1,000 today to be paid back one year from today at 5% interest, the payment you will have to make in one year will be

a. $1,050.

b. $1,500.

c. $1,055.

d. $1,005.

2. If the interest rate is 5%, the value of $1,000 at the end of 10 years is

a. $1,505.

b. $1,628.89.

c. $10,000.

d. $57,665.04.

3. On payday you get paid in cash, so each week you put $10 into a shoebox in your closet so that you can buy a big-screen TV at the end of the year. In this situation, money is serving as a

a. unit of account.

b. medium of exchange.

c. store of value.

d. rainy day fund.

Reference no: EM132071457

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