- An appliance store sells a tv for $1,200 and gives their customers a full three years to pay for the tv. If interest rates are 5 percent, what is the equivalent sales price of the tv when the customer takes the full 3 years to pay for it? $1036.61
- An average home in Chicago costs $295,000 if houses are expected to grow at an average rate of 3% per year, what will a house cost in 5 years? $341,985.85
- An average home in Chicago costs $295,000 if houses are expected to grow at an average rate of 3% per year, what will a house cost in 5 years? 341985.85
- Assume you borrow $5,000 today and pay back the loan in one lump sum four years from today. You are charged 8 percent interest per year. What amount will you pay back and how much interest will you pay? $6,802.44;$1802.44
- Assume you borrow $500 from a payday lender. The terms are that you must pay a fee of $75 in advance (today) and one year from now you need to repay $750. What implied interest rate are you paying? 76.47 percent
- Ate age 20 you invest $1,000 that earns 7 percent each year. At age 30 you invest $1,000 that earns 10 percent per year. In which case would you have more money at age 60? At age 30 invest $1,000 at 10 percent
- Compute the future value in year 10 of a $1,000 deposit in year 1 and another $1,500 deposit at the end of year 4 using an 8 percent interest rate 4379.31
- Determine the interest rate earned on a $1,500 deposit when $1,680 is paid back in one year 12 Percent
- Five years ago, Jane invested $5,000 and locked in an 8 percent annual interest rate for 25 years (end 20 years from now). James can make a 20 year investment today and lock in a 10 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Jane? $5,089.91
- Given a 5 percent interest rate, comput the present value of deposits made in years 1,2,3 and 4 of $1,000, $1,400, and $1,500 $4,665.65
- How much do you need to deposit in your account today if you want to have $10,000 accumulated in your account in 6 years? Assume 5% interest rate. $7,462
- How much do you need to deposit in your account today if you want to have $10,000 accumulated in your account in 6 years? Assume 5% interest 7462
- If you deposit $400 in an account today at 6% annual interest rate, one year from today you will have ___________in your account 424
- If you deposit $700 in an account today at 4% annual interest rate, 8 years from today you will have in your account. $958
- If you start making $115 monthly contributions today and continue them for six years, what is their present value if the compounding rate is 12 percent APR? What is the present value of this annuity? $5,941.12
- If you start making $115 monthly contributions today and continue them for six years, what is their present value if the compounding rate is 12 percent APR? What is the present value of this annuity? 5941.12
- What annual rate of return in earned on a $200 investment when it grows to $850 in 10 years? 15.57 percent
- What is the future value of $700 deposited for one year earning 4 percent interest rate annually? $728
- What is the future value of an $800 annuity payment over 15 years if the interest rates are 6 percent? $18,620.78
- What is the future value of an $800 annuity payment over 15 years if the interest rates are 6 percent? 18620.78
- What is the present value of a $500 deposit in year 1 and another $100 deposit at the end of year 4 if interest rates are 5 percent? $558.46
- What is the value in year 2 of a $200 cash flow made in year 8 if interest rates are 3 percent? $167.50
- You borrow $10,000 and will pay back the entire amount in 10 years. You are charged 6 percent interest per year. How much interest do you pay on this loan? $7908.48
- You just won the lottery and after taxes you have $32,000. You want to have 1,000,000 by the time you are 65, which is 45 years from now. Assuming that you can earn 9% each on your money, hoe much (in dollars) of the $32,000 must you invest today? $20692.24
- You wish to buy a $30,000 car. The dealer offers you a 5 year loan with a 9 percent APR. What are the monthly payments? what is the monthly payment if you paid interest only? $622.75; $225.00
- Your client has been given a trust fund valued at %1 million. She cannot access the money until she turns 68 years old, which is in 12 years. At that time, she can withdraw $30,000 per month. If the trust fund is invested at a 7 percent interest rate, how many months will it last your client once she starts to withdraw the money? 99.05 months
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