I need to help from this that I don’t know how to answer. I need to know before I can submitted on today at 11:59pm
Question 1 Assume that you purchase a 6-year, 8% savings certificate for $1,000. If interest is compounded annually, what will be the value of the certificate when it matures?
$2,035 $1,900 $1,587 $1,634
Question 2 Your parents’ small business purchases undeveloped land for $150,000 and, after a few years, forgets that they own it. You inherit the land after 50 years. What is the land worth if it returned 5.5% annually over the 50 years?
$1,989,888 $2,181,294 $2,233,211 $2,212,234
Question 3 you deposit $1.50 in the bank, the year is 2017. Assuming you were able to time travel to the year 3017, how much would you have if the bank paid you 2.5% annually?
$856.3 million $1.1 trillion $3,345 $79.4 billion
Question 4 you deposit $1.50 in the bank, the year is 2017. Assuming you were able to time travel to the year 3017, how much would you have if the bank paid you 2.5% annually? Assume that you were not able to take advantage of the magic of compounding and the bank simply mailed you a check for the interest amount each year, which was put in a safe deposit box.
$5,500 dollars $39 dollars $79.4 billion $39 million
Question 5 Assume that you purchase a 6-year, 8% savings certificate for $1,000. If interest is compounded semi-annually, what will be the value of the certificate when it matures?
$1,400 $1,625 $1,601 $1,587
Question 6 Assume you receive $25,500 from an expired 10-year, 4.5% savings certificate. If interest was compounded annually, how much was initially deposited at the beginning of the time period (i.e., what is the present value of the savings certificate)?
$16,543 $16,555 $16,420 $16,820
Question 7 an investment will pay $50 at the end of each of the next 3 years, and $250 at the end of Year 4. If other investments of equal risk earn 12% annually, what is its present value?
$325 $277 $279 $400
Question 8 you purchase Apple stock (ticker: AAPL) for $125. After 13 years, you sell the stock for $354. What is your average annual return over the life of your investment in Apple?
225% 12.3% 8.3% 10.5%
Question 9 would you rather have $1,500 in 2 years, or $1,450 in 1 year? Assume you can make 1.2% on your investments.
$1,450 in 2 years since its PV is $8 higher; $1,500 in 2 years since its PV is $32 higher; $1,500 in 2 years since its PV is $15 higher; $1,450 in 2 years since its PV is $56 higher
Question 10 If Kara has $5,000 invested in Northern Bank, which pays 3.8% annually, how long will it take for her funds to triple?
29 years 27 years 28 years 25 years
Question 11 In Pride and Prejudice Mr. Darcy is said to make 10,000 pounds a year, while his friend, Mr. Bingley, makes 5,000 pounds a year. How much more money did Elizabeth make compared to her sister, Jane, over the course of 40 years, by marrying Mr. Darcy instead of Mr. Bingley? Assume both make a return of 5.0%, which is in-line with interest rates in 1813, and they invest everything they receive at this rate.
590,000 pounds 584,000 pounds 600,000 pounds 604,000 pounds
Question 12 John has just won the state lottery and has three award options from which to choose. He can elect to receive a lump sum payment today of $46 million, 10 annual end-of-year payments of $7 million, or 30 annual end-of-year payments of $4 million. If he expects to earn a 10.5% annual return on his investments, which option should he choose?
$46 million today 30 payments of $4 million 10 payments of $7 million
Question 13 Starting next year, you will need $10,000 annually for 4 years to complete education. (One year from today you will withdraw the first $10,000.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $10,000 payments. How large must the deposit be? Round your answer to the nearest cent.
$35,460 $15,666 $22,843 $31,500
Question 14 you have applied for a mortgage of $60,000 to finance the purchase of a new home. How much will your monthly payment be if you are given a 4.5% mortgage rate for a 30 year, fixed mortgage?
$330.45 $319.33 $358.43 $304.01
You have applied for a mortgage of $60,000 to finance the purchase of a new home. The bank will require you to make weekly payments of $110.35 at the end of each week over the next 20 years. Determine the annual interest rate in effect on this mortgage.
7.4% 8.8% 6.5% 0.1%
Question 16 you are interested in living near Biola for generations to come. You find a $1,098,888 home near the park. Assuming you put 20% down, how much interest would you pay during month 2? Assume you receive a 30 year fixed mortgage, paid monthly, with a rate of 3.75%.
$2,747.22 $2,945.09 $2,847.33 $2,993.41
Question 17 you have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will have a 9% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations.
$19,065 $22,032 $13,054 $14,065
Question 18 you purchase a 15 room home in Georgia for $350,000. Assuming you put 10% down, how much principal would you pay during month 55? Assume you receive a 30 year fixed mortgage, paid monthly, with a rate of 6.9%.
$1,303.23 $320.02 $358.91 $1,731.78