Math review problems ?

Question

13: A man buys a home for $15,000 cash. If he had invested this money, it would have earned interest at 5% compounded annually. How much interest would be lost in three years?

$2250.00

$2364.38

$2150.00

$2167.43

14: A man has $7500 to invest for about 10 years. He could buy government E bonds (a $750 bond matures to $1000 after 9 2/3 years), or he could buy stocks paying 2% annually. After 9 2/3 years, how much interest will the bonds have earned?

$2500

$1500

$2250

$2175

15: After 10 years, how much interest will the stocks have earned?

$2500

$1500

$2250

$2175

Answer 1

13. $2,364.38

14. $1,500.00

15.  $1,500.00, although this part is somewhat misleading, because stocks don't "pay" an interest rate.  The $1,500.00 is correct providing the stock earned a "yield" of 2%, non-compounding.