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Question;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;B. $251,008.17;C. $270,013.38D. $277,628.63;E. $291,480.18;28. You hope 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;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;41. Theo needs $40,000 as a down payment for a house 6;years from now. He earns 3.5 percent on his savings. Theo can either deposit;one lump sum today for this purpose or he can wait a year and deposit a lump;sum. How much additional money must he deposit if he waits for one year rather;than making the deposit today?;A. $878.98;B. $911.13;C. $1,138.90;D. $1,348.03;E. $1,420.18;42. One year ago, you invested $1,800. Today it is;worth $1,924.62. What rate of interest did you earn?;A. 6.59 percent;B. 6.67 percent;C. 6.88 percent;D. 6.92 percent;E. 7.01 percent;43. According to the Rule of 72, you can do which one;of the following?;A. double your money in five years at 7.2 percent interest;B. double your money in 7.2 years at 8 percent interest;C. double your money in 8 years at 9 percent interest;D. triple your money in 7.2 years at 5 percent interest;E. triple your money at 10 percent interest in 7.2 years;44. Forty years ago, your mother invested $5,000.;Today, that investment is worth $430,065.11. What is the average annual rate of;return she earned on this investment?;A. 11.68 percent;B. 11.71 percent;C. 11.78 percent;D. 11.91 percent;E. 12.02 percent;$;45. Sixteen years ago, Alicia invested $1,000. Eight;years ago, Travis invested $2,000. Today, both Alicia's and Travis' investments;are each worth $2,400. Assume that both Alicia and Travis continue to earn;their respective rates of return. Which one of the following statements is;correct concerning these investments?;A. Three years from today, Travis' investment will be worth more than;Alicia's.;B. One year ago, Alicia's investment was worth less than Travis;investment.;C. Travis earns a higher rate of return than Alicia.;D. Travis has earned an average annual interest rate of 3.37 percent.;E. Alicia has earned an average annual interest rate of 6.01 percent.;46. Penn Station is saving money to build a new;loading platform. Two years ago, they set aside $24,000 for this purpose.;Today, that account is worth $28,399. What rate of interest is Penn Station;earning on this investment?;A. 6.39 percent;B. 7.47 percent;C. 8.78 percent;D. 9.23 percent;E. 9.67 percent;47. Fifteen years ago, Jackson Supply set aside;$130,000 in case of a financial emergency. Today, that account has increased in;value to $330,592. What rate of interest is the firm earning on this;money?;A. 5.80 percent;B. 6.42 percent;C. 6.75 percent;D. 7.28 percent;E. 7.53 percent;48. Fourteen years ago, your parents set aside $7,500;to help fund your college education. Today, that fund is valued at $26,180.;What rate of interest is being earned on this account?;A. 7.99 percent;B. 8.36 percent;C. 8.51 percent;D. 9.34 percent;E. 10.06 percent;49. Some time ago, Julie purchased eleven acres of;land costing $36,900. Today, that land is valued at $214,800. How long has she;owned this land if the price of the land has been increasing at 10.5 percent;per year?;A. 13.33 years;B. 16.98 years;C. 17.64 years;D. 19.29 years;E. 21.08 years;50. On your ninth birthday, you received $300 which you invested at 4.5;percent interest, compounded annually. Your investment is now worth $756. How;old are you today?;A. age 29;B. age 30;C. age 31;D. age 32;E. age 33

Paper#51100 | Written in 18-Jul-2015

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