Name: Assignment #1

Instructions:  

Question 1   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
 

 
Question 2   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 3   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 4   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 5   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