# Trayne rice has \$3,000 to invest for three years. he wants to receive

1.     Trayne Rice has \$3,000 to invest for three years. He wants to receive \$5,000 at the end of the three years. What invest rate would his investment have to earn to achieve his goal? (Round to the nearest percent.)

2.     Your mother is trying to choose one of the following bank CDs to deposit \$10,000. Which one will have the highest future value if she plans to invest for three years?

 a. 3.75% compounded annually. b. 3.5% compounded daily c. 3.4% compounded quarterly d. 3.25% compounded monthly

3.     Hassan Ali has made an investment that will pay him \$11,455, \$16,376, and \$19,812 at the end of the next three years. His investment was to fetch him a return of 14 percent. What is the present value of these cash flows? (Round to the nearest dollar.)

 a. \$36,022 b. \$41,675 c. \$39,208 d. \$33,124

4.     Genaro needs to capture a return of 40 percent for his one-year investment in a property. He believes that he can sell the property at the end of the year for \$150,000 and that the property will provide him with rental income of \$25,000. What is the maximum amount that Genaro should be willing to pay for the property?

 a. \$112,500 b. \$150,000 c. \$125,000 d. \$137,500