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##### accounts data bank with all solutions

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Question;21. Gerold invested $6,200 in an account that pays 5;percent simple interest. How much money will he have at the end of ten;years?;A. $8,710;B. $9,000;C. $9,300;D. $9,678;E. $10,099;22. Alex invested $10,500 in an account that pays 6;percent simple interest. How much money will he have at the end of four;years?;A. $12,650;B. $12,967;C. $13,020;D. $13,256;E. $13,500;23. You invested $1,650 in an account that pays 5;percent simple interest. How much more could you have earned over a 20-year;period if the interest had compounded annually?;A. $849.22;B. $930.11;C. $982.19;D. $1,021.15;E. $1,077.94;24. Travis invested $9,250 in an account that pays 6;percent simple interest. How much more could he have earned over a 7-year;period if the interest had compounded annually?;A. $741.41;B. $773.58;C. $802.16;D. $833.33;E. $858.09;25. What is the future value of $7,189 invested for 23;years at 9.25 percent compounded annually?;A. $22,483.60;B. $27,890.87;C. $38,991.07;D. $51,009.13;E. $54,999.88;26. Today, you earn a salary of $36,000. What will be;your annual salary twelve years from now if you earn annual raises of 3.6;percent?;A. $55,032.54;B. $57,414.06;C. $58,235.24;D. $59,122.08;E. $59,360.45;27. You own a classic automobile that is currently;valued at $147,900. If the value increases by 6.5 percent annually, how much;will the automobile be worth ten years from now?;A. $244,035.00;B. $251,008.17;C. $270,013.38;D. $277,628.63;E. $291,480.18;28. You hope to buy your dream car four years from;now. Today, that car costs $82,500. You expect the price to increase by an;average of 4.8 percent per year over the next four years. How much will your;dream car cost by the time you are ready to buy it?;A. $98,340.00;B. $98,666.67;C. $99,517.41;D. $99,818.02;E. $100,023.16;29. This morning, TL Trucking invested $80,000 to help;fund a company expansion project planned for 4 years from now. How much;additional money will the firm have 4 years from now if it can earn 5 percent;rather than 4 percent on its savings?;A. $2,940.09;B. $3,651.82;C. $4,008.17;D. $4,219.68;E. $4,711.08;30. You just received $225,000 from an insurance;settlement. You have decided to set this money aside and invest it for your;retirement. Currently, your goal is to retire 25 years from today. How much;more will you have in your account on the day you retire if you can earn an;average return of 10.5 percent rather than just 8 percent?;A. $417,137;B. $689,509;C. $1,050,423;D. $1,189,576;E. $1,818,342;31. You just received a $5,000 gift from your;grandmother. You have decided to save this money so that you can gift it to;your grandchildren 50 years from now. How much additional money will you have;to gift to your grandchildren if you can earn an average of 8.5 percent instead;of just 8 percent on your savings?;A. $47,318.09;B. $52,464.79;C. $55,211.16;D. $58,811.99;E. $60,923.52;32. You are depositing $1,500 in a retirement account;today and expect to earn an average return of 7.5 percent on this money. How;much additional income will you earn if you leave the money invested for 45;years instead of just 40 years?;A. $10,723.08;B. $11,790.90;C. $12,441.56;D. $12,908.19;E. $13,590.93;33. You collect old coins. Today, you have two coins;each of which is valued at $250. One coin is expected to increase in value by 6;percent annually while the other coin is expected to increase in value by 4.5;percent annually. What will be the difference in the value of the two coins 15;years from now?;A. $115.32;B. $208.04;C. $241.79;D. $254.24;E. $280.15;34. Your father invested a lump sum 26 years ago at;4.25 percent interest. Today, he gave you the proceeds of that investment which;totaled $51,480.79. How much did your father originally invest?;A. $15,929.47;B. $16,500.00;C. $17,444.86;D. $17,500.00;E. $17,999.45;35. What is the present value of $150,000 to be;received 8 years from today if the discount rate is 11 percent?;A. $65,088.97;B. $71,147.07;C. $74,141.41;D. $79,806.18;E. $83,291.06;36. You would like to give your daughter $75,000;towards her college education 17 years from now. How much money must you set;aside today for this purpose if you can earn 8 percent on your;investments?;A. $18,388.19;B. $20,270.17;C. $28,417.67;D. $29,311.13;E. $32,488.37;37. You want to have $35,000 saved 6 years from now to;buy a house. How much less do you have to deposit today to reach this goal if you;can earn 5.5 percent rather than 5 percent on your savings? Today's deposit is;the only deposit you will make to this savings account.;A. $733.94;B. $791.18;C. $824.60;D. $845.11;E. $919.02;38. Your older sister deposited $5,000 today at 8.5;percent interest for 5 years. You would like to have just as much money at the;end of the next 5 years as your sister will have. However, you can only earn 7;percent interest. How much more money must you deposit today than your sister;did if you are to have the same amount at the end of the 5 years?;A. $321.19;B. $360.43;C. $387.78;D. $401.21;E. $413.39;39. A year ago, you deposited $30,000 into a;retirement savings account at a fixed rate of 5.5 percent. Today, you could;earn a fixed rate of 6.5 percent on a similar type account. However, your rate;is fixed and cannot be adjusted. How much less could you have deposited last;year if you could have earned a fixed rate of 6.5 percent and still have the;same amount as you currently will when you retire 38 years from today?;A. $2,118.42 less;B. $3,333.33 less;C. $5,417.09 less;D. $7,274.12 less;E. $9,234.97 less;40. When you retire 40 years from now, you want to;have $1.2 million. You think you can earn an average of 12 percent on your;investments. To meet your goal, you are trying to decide whether to deposit a;lump sum today, or to wait and deposit a lump sum 2 years from today. How much;more will you have to deposit as a lump sum if you wait for 2 years before;making the deposit?;A. $1,414.14;B. $2,319.47;C. $2,891.11;D. $3,280.78;E. $3,406.78

Paper#44178 | Written in 18-Jul-2015

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