QUESTION 1How much money would you have to invest today, at an interest rate of 5% in order to reach your goal of $1,000,000 in 30 years? Assume no additional money is invested.Choose one • 20 points$123,737.45$321,377.45$231,377.45$132,733.45QUESTION 2What annual investment amount must be invested every year in order to reach a goal of $1,000,000 in 30 years at an interest rate of 5%? (assume no upfront investment PV=0)Choose one • 20 points$15,051.44$231,377.45$1,000,000$33,333.33QUESTION 3The two bank websites I researched showed that their annual savings account interest rates are ______. This is because _____.Choose one • 15 pointshigh…they are risky investmentslow…they are nearly risk-freelow…the government (specifically Congress) keeps them lowhigh…the supply of ATM machines is too lowQUESTION 4What one-time investment amount must be invested today, at a higher interest rate of 7.17% in order to reach a goal of $1,000,000 in 30 years?Choose one • 20 points$1,000,000$71,700$152,257.13$125,257.31QUESTION 5The interest rates on savings accounts is ____ the interest rate (rate of return) on riskier investments such as stocks & stock funds.Choose one • 3 pointsthe same as (they are determined by central bank)lower thanhigher thanQUESTION 6Savings account interest rates at the bank are products just like groceries are at the grocery store. Just as we make economic decisions with our food buys…Choose one • 2 pointswe should always accept the savings rate at the nearest bankwe should shop around for (or at least consider) the highest savings rate possible.QUESTION 7If you want to reach a long-term investment (savings) goal, a good strategy to consider is…Choose one • 5 pointssaving money up-front and leaving it to grow over time.saving money out of your income and placing it into an investment each year.both of theseplaying the lottery (show me the money! even my stacks got stacks)QUESTION 8TRUE OR FALSE: If you want to become a millionaire in 30 years, a savings account is the best investment to choose.Choose one • 2 pointsTrueFalseQUESTION 9TRUE OR FALSE: If you want to become a millionaire in 30 years, the time value of money formulas that businesses use will help you estimate how much money to invest.Choose one • 3 pointsTrueFalseQUESTION 10If you want to become a millionaire in 30 years…Choose one • 3 pointsthe longer you wait to start investing, the bigger the payout is.the earlier you invest, the better your odds will be of reaching this goal.QUESTION 11If you want to become a millionaire in 30 years…Choose one • 2 pointsstocks and/or mutual funds could get you there faster.a savings account is the best choice.QUESTION 12Which of the following dynamics of investing / creating wealth is TRUE?Choose one • 5 pointsthe higher the interest rate / return on your investment, the larger the amount of money you need to invest in order to reach your goal.the higher the interest rate / return on your investment, the smaller the amount of money you need to invest in order to reach your goal.