13) If you leave $950 in an account for five years and the account earns 8% compounded annually, what
will the balance in the account grow to?
A. $1,341.05
B. $1,347.82
C. $1,395.86
D. $1,406.23
E. $1,491.15
14) You are supposed to receive $2,000 five years from now. At an interest rate of 6%, what is the $2,000
worth today?
A. $1,491.97
B. $1,492.43
C. $1,494.52
D. $1,497.91
E. $1,499.01
15) The value of the current assets divided by the value of the current liabilities is called:
A. Cash ratio
B. Current ratio
C. Quick ratio
D. Net Working Capital
E. Liquid ratio
16) Dale invests $500 in an account that pays 6% simple interest. How much more could he have earned
over a thirty year period if the interest had compounded annually?
A. $1,471.75
B. $1,532.50
C. $1.621.25
D. $1,804.25
E. $2,371.75