Question 1

 

Multiple Answer

(1.0000 points)

 

Question:

How much should you deposit at the end of each year in
an account paying 8% interest compounded annually in order to accumulate $1000 by the end of the third year?

 

 

 

$27.78
$308.03
$333.33
$1080
$3000

 

 

Question 2

 

Multiple Answer

(1.0000 points)

 

Question:

If you deposit $1,000 every year at the end of the year in an investment account yielding 8 percent compounded annually, how much will the account have in it after three years?

 

 

 

$3,000
$3,080
$3,160
$3,240
$3,246.40

 

 

Question 3

 

Multiple Answer

(1.0000 points)

 

Question:

If you deposit $1,000 in an investment account yielding 8 percent compounded annually, how much will the account have in it after three years?

 

 

 

$1,000
$1,080
$1,166.40
$1,240
$1,259.71

 

 

Question 4

 

Multiple Answer

(1.0000 points)

 

Question:

If you deposit $1,000 in an investment account yielding 8 percent compounded monthly, how much will the account have in it after three years?

 

 

 

$1,000
$1,166.40
$1,240
$1,259.71
$1,270.24

 

 

Question 5

 

Multiple Answer

(1.0000 points)

 

Question:

Which of the following compounding methods at a bank would earn you the most interest on a $10,000 deposit that you keep in the bank for one year?

 

 

 

Annual compounding
Semi-annual compounding
Quarterly compounding
Monthly compounding
Daily compounding