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Three-year investment with a future value

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Reference no: EM131061249

1. A business acquaintance promises to deliver a $20 bill to you one year from today. How much should you be willing to pay today for this promise?

  • More than $20
  • Exactly $20
  • Less than $20

2. What is the present value of $1,000 received three years from today if interest rates are currently 6 percent?

  • $943.40
  • $839.62
  • $1,191.02
  • $1,000.00

3. What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?

  • 5%
  • 10%
  • 7.36%
  • 2.54%

4. The product rule of exponents says that when multiplying two powers that have the same base, you need to ________.

  • divide the exponents
  • add the exponents
  • multiply the exponents
  • subtract the exponents

5. The fifth root of fifteen is equal to ________.

  • 15 raised to the power of 15
  • one fifth of 15
  • 15 raised to the power of 1/5
  • one fifteenth of 15

Reference no: EM131061249

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