1. A deposit of $4,375 earns 5.45 percent the first year, 5.86percent the second year, 6.52 percent the third year, 7.08 percentin the fourth year and 7.54 percent in the fifth year. What is theamount of the fifth year future value?
A. less than $5,915
B. more than $5,915 but less than $5,950
C. more than $5,950 but less than $5,985
D. more than $5,985 but less than $6,020
E. more than $6,020

2. How much would be in your savings account in 18 years afterdepositing $1,475 today if the bank pays 5.76 percent interest peryear and compounds annually?
A. less than $3,920
B. more than $3,920 but less than $3,955
C. more than $3,955 but less than $3,990
D. more than $3,990 but less than $4,025
E. more than $4,025

3. You can invest $7,500 for 12 years in an account that earns5.76 percent per year or you can choose an account that has adelayed start for two years. That is, you wait two years and put$7,500 into an account that earns 6.84 percent per year. Assumethat both accounts compound monthly. If you select the investmentearning 5.76 percent, how much more interest will you earn than theaccount that pays 6.84 percent per year?
A. less than $115
B. more than $115 but less than $140
C. more than $140 but less than $175
D. more than $175 but less than $210
E. more than $210

4. Caroline wants to retire in 20 years and she has $167,895 in herretirement account today. Her Uncle James and Aunt Mary haveestablished a trust fund for her that will pay $125,000 to her in20 years. Caroline wants the sum of the trust and her retirementaccount to equal $725,000 upon retirement. If the accounts compoundinterest annually, what annual rate will Caroline need to earn onthe retirement account to achieve this goal?
A. less than 6.00
B. more than 6.00 percent but less than 6.35 percent
C. more than 6.35 percent but less than 6.70 percent
D. more than 6.70 percent but less than 7.05 percent
E. more than 7.05 percent