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Question 1: Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years? Question 2: In 1966, the average tuition for one year in the MBA program at the University of Chicago was $3,600. Thirty years later, in 1996, the average tuition was $27,400. What is the compound annual growth rate in tuition (rounded to the nearest whole percentage) over the 30 -year period? Question 3: You put $2,000 in an IRA account at Northern Trust. This account pays a fixed interest rate of 8% compounded annually. How much money do you have in five years? Question 4: You need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Question 5: In 1976, the average price of a domestic car was $5,100. Twenty years later, in 1996 , the average price was $16,600. What was the annual growth rate in the car price over the 20-year period? Question 6: Tracey deposits $5,000 in a five-year certificate of deposit paying 6% compounded semi-annually. How much will Tracey have at the end of the five-year period? Question 7: An investment will mature in 20 years. Its maturity value is $1,000. If the discount rate is 7%, what is the present value of the investment

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