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Question;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#51177 | Written in 18-Jul-2015

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