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  3. Fundamentals of Financial Management Study Set 1
  4. Quiz 5: Time Value of Money

You Deposit $1,475 Today in a Savings Account That Pays

Question 74
Multiple Choice

You deposit $1,475 today in a savings account that pays 6% interest,compounded annually.How much will your account be worth at the end of 25 years? A) $5,760.76 B) $7,026.87 C) $7,216.78 D) $6,330.51 E) $6,203.90

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Q 75
You deposit $500 today in a savings account that pays 6% interest,compounded annually.How much will your account be worth at the end of 30 years? A) $3,331.22 B) $2,756.88 C) $2,670.72 D) $3,503.53 E) $2,871.75
Q 76
Suppose a State of New York bond will pay $1,000 ten years from now.If the going interest rate on these 10-year bonds is 3.1%,how much is the bond worth today? A) $736.91 B) $817.97 C) $869.55 D) $840.08 E) $714.80
Q 77
Suppose a State of California bond will pay $1,000 eight years from now.If the going interest rate on these 8-year bonds is 6.6%,how much is the bond worth today? A) $461.78 B) $581.72 C) $599.71 D) $455.78 E) $743.64
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