Description of this paper

general business data bank




Question;Multiple Choice Questions;56. Assume the total cost of a college;education will be $300,000 when your child enters college in 16 years. You;presently have $75,561 to invest. What rate of interest must you earn on your;investment to cover the cost of your child's college education?;A. 7.75 percent;B. 8.50 percent;C. 9.00 percent;D. 9.25 percent;E. 9.50 percent;57. At 11 percent interest, how long would;it take to quadruple your money?;A. 6.55 years;B. 6.64 years;C. 13.09 years;D. 13.28 years;E. 13.56 years;58. Assume the average vehicle selling price;in the United States last year was $41,996. The average price 9 years earlier;was $29,000. What was the annual increase in the selling price over this time;period?;A. 3.89 percent;B. 4.20 percent;C. 4.56 percent;D. 5.01 percent;E. 5.40 percent;59. You're trying to save to buy a new;$160,000 Ferrari. You have $56,000 today that can be invested at your bank. The;bank pays 6 percent annual interest on its accounts. How many years will it be;before you have enough to buy the car? Assume the price of the car remains;constant.;A. 16.67 years;B. 17.04 years;C. 17.41 years;D. 17.87 years;E. 18.02 years;60. Imprudential, Inc. has an unfunded;pension liability of $850 million that must be paid in 25 years. To assess the;value of the firm's stock, financial analysts want to discount this liability;back to the present. The relevant discount rate is 6.5 percent. What is the;present value of this liability?;A. $159,803,162;B. $171,438,907;C. $176,067,311;D. $184,519,484;E. $191,511,367;61. You have just received notification;that you have won the $1.4 million first prize in the Centennial Lottery.;However, the prize will be awarded on your 100th birthday, 70 years from now.;The appropriate discount rate is 8 percent. What is the present value of your;winnings?;A. $4,288.16;B. $6,404.20;C. $15,309.91;D. $23,333.33;E. $25,000.00;62. Your coin collection contains;fifty-four 1941 silver dollars. Your grandparents purchased them for their face;value when they were new. These coins have appreciated at a 10 percent annual;rate. How much will your collection be worth when you retire in 2060?;A. $3,611,008;B. $3,987,456;C. $4,122,394;D. $4,421,008;E. $4,551,172;63. In 1895, the winner of a competition;was paid $110. In 2006, the winner's prize was $70,000. What will the winner's;prize be in 2040 if the prize continues increasing at the same rate?;A. $389,400;B. $421,122;C. $479,311;D. $505,697;E. $548,121;64. Suppose that the first comic book of a;classic series was sold in 1954. In 2000, the estimated price for this comic;book in good condition was about $340,000. This represented a return of 27;percent per year. For this to be true, what was the original price of the comic;book in 1954?;A. $5.00;B. $5.28;C. $5.50;D. $5.71;E. $6.00;65. Suppose you are committed to owning a;$140,000 Ferrari. You believe your mutual fund can achieve an annual rate of;return of 9 percent and you want to buy the car in 7 years. How much must you;invest today to fund this purchase assuming the price of the car remains;constant?;A. $74,208.16;B. $76,584.79;C. $77,911.08;D. $78,019.82;E. $79,446.60;66. You have just made a $1,500;contribution to your individual retirement account. Assume you earn a 12;percent rate of return and make no additional contributions. How much more will;your account be worth when you retire in 25 years than it would be if you;waited another 10 years before making this contribution?;A. $8,306.16;B. $9,658.77;C. $16,311.18;D. $16,907.17;E. $17,289.75;67. You are scheduled to receive $30,000 in;two years. When you receive it, you will invest it for 5 more years, at 8;percent per year. How much money will you have 7 years from now?;A. $39,909.19;B. $41,381.16;C. $44,079.84;D. $47,209.19;E. $51,414.73;68. You expect to receive $9,000 at;graduation in 2 years. You plan on investing this money at 10 percent until you;have $60,000. How many years will it be until this occurs?;A. 18.78 years;B. 19.96 years;C. 21.90 years;D. 23.08 years;E. 25.00 years


Paper#51217 | Written in 18-Jul-2015

Price : $22