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Question :
31) Kathy deposited $100 in a savings account that paid : 1907281

31) Kathy deposited $100 in a savings account that paid 8% interest, compounded annually. How much compound interest did she earn after 2 years?

A) $15.64

B) $16.64

C) $8.08

D) $8.00

E) $8.64

32) What is the future value of $16.54 after two years if these funds can be invested to earn 5.5%, compounded annually?

A) $18.24

B) $18.36

C) $18.58

D) $18.50

E) $18.41

33) The future value of $200 received today and deposited at 8 percent for three years is: (Round to the nearest whole dollar)

A) $248

B) $252

C) $158

D) $200

E) $249

34) The rate of interest actually paid or earned, is the ________ interest rate

A) effective

B) nominal

C) discounted

D) continuous

35) At an inflation rate of 9 percent, the purchasing power of $1 would be cut in half in 8.04 years. How long to the nearest year would it take the purchasing power of $1 to be cut in half if the inflation rate were only 4 percent?

A) 12 years

B) 15 years

C) 18 years

D) 20 years

E) 23 years

36) The future value of $100 received today and deposited at 6 percent for four years is: (Round to the nearest whole dollar)

A) $126

B) $79

C) $124

D) $116

E) $106

37) Charlene owns stock in a company which has consistently paid a growing dividend over the last five years. The first year Charlene owned the stock, she received $1.71 per share and in the fifth year, she received $2.89 per share. What is the growth rate of the dividends over the last five years? (Round to the nearest whole number)

A) 7 percent

B) 14 percent

C) 12 percent

D) 5 percent

E) 11 percent

38) Julian was given a gold coin originally purchased for $1 by his great grandfather 50 years ago. Today the coin is worth $450. The rate of return realized on the sale of this coin is approximately equal to:

A) 7.5%

B) 13%

C) 50%

D) 10%

E) 15%

39) Young Sook owns stock in a company which has consistently paid a growing dividend over the last 10 years. The first year Young Sook owned the stock, she received $4.50 per share and in the 10th year, she received $4.92 per share. What is the growth rate of the dividends over last 10 years?

A) 5 percent

B) 4 percent

C) 2 percent

D) 1 percent

E) 3 percent

40) Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will be:

A) Higher

B) Lower

C) Stay the same

D) Cannot tell

E) Variable