You want to have $1 million in your savings account when you retire. You plan on investing a single lump sum today to fund this goal

You want to have $1 million in your savings account when you retire. You plan on investing a single lump sum today to fund this goal. You are planning on investing in an account which will pay 7.5 percent annual interest. Which of the following will reduce the amount that you must deposit today if you are to have your desired $1 million on the day you retire? I. Invest in a different account paying a higher rate of interest. II. Invest in a different account paying a lower rate of interest.  III. Retire later. IV. Retire sooner.    A.  I only B.  II only C.  I and III only D.  I and IV only E.  II and III only

18.	Which one of the following will produce the highest present value interest factor?    A.  6 percent interest for five years B.  6 percent interest for eight years C.  6 percent interest for ten years D.  8 percent interest for five years E.  8 percent interest for ten years

19.

What is the relationship between present value and future value interest factors?    A.  The present value and future value factors are equal to each other. B.  The present value factor is the exponent of the future value factor. C.  The future value factor is the exponent of the present value factor. D.  The factors are reciprocals of each other. E.  There is no relationship between these two factors.

20.

Martin invested $1,000 six years ago and expected to have $1,500 today. He has not added or withdrawn any money from this account since his initial investment. All interest was reinvested in the account. As it turns out, Martin only has $1,420 in his account today. Which one of the following must be true?    A.  Martin earned simple interest rather than compound interest. B.  Martin earned a lower interest rate than he expected. C.  Martin did not earn any interest on interest as he expected. D.  Martin ignored the Rule of 72 which caused his account to decrease in value. E.  The future value interest factor turned out to be higher than Martin expected.