70.2K

Verified Solution

Link Copied!

$1.$ A $9-$year investment pays $8\mathrm{.}57\%$ per year. You decide to invest $$333\mathrm{.}25$ of your own money. After nine years, how much SIMPLE interest was earned?

A$.$$$275\mathrm{.}53$

B$.$$$171\mathrm{.}81$

C$.$ $$202\mathrm{.}50$

D$.$ $$189\mathrm{.}74$

E$.$ $$257\mathrm{.}04($Correct$)$

$2.$ A $9-$year investment pays $8\mathrm{.}57\%$ per year. You decide to invest $$333\mathrm{.}25$ of your own money. After nine years, how much COMPOUND interest was earned?

A$.$ $$72\mathrm{.}32$

B$.$ $$90\mathrm{.}47$

C$.$ $$108\mathrm{.}20($Correct Answer$)$

D$.$ $$126\mathrm{.}74$

E$.$ $$133\mathrm{.}01$

$3.$ Rachel retired on her ${55}^{th}$ birthday with $$1,000,000$ in a retirement account that earned $6\%$ per year,

compounded monthly. Rachel plans to withdraw $$6,500$ per month to cover her living expenses while retired.

How old would Rachel be when her money finally runs out?

A$.79\mathrm{.}50$ years old $($Correct Answer$)$

B$.96\mathrm{.}50$ years old

C$.294\mathrm{.}00$ years old

D$.349\mathrm{.}20$ years old

E$.$ None of these

$4.$Erin places $$200$ in a savings account that pays $7\%$ interest, compounded monthly. How much will she have in the account in three years?

A$.$ $$236\mathrm{.}00$

B$.$ $$238\mathrm{.}00($Correct Answer$)$

C$.$ $$245\mathrm{.}00$

D$.$ $$246\mathrm{.}59$

E$.$ $$229\mathrm{.}57$

$5.$ Your monthly budget for a car is $$475\mathrm{.}00.$ Based on your credit profile, you can obtain a $4-$year loan with a $5\mathrm{.}15\%$ annual rate $($assume monthly compounding$).$ With these parameters in place, how much car can you afford to buy? How much ADDITIONAL car could you buy if you took out a $5-$year loan as opposed to a $4-$year loan $($assume all other parameters remain constant$)?$

A$.$ $$19,334\mathrm{.}26$ and $$4,209\mathrm{.}26$

B$.$ $$19,334\mathrm{.}26$ and $$4,498\mathrm{.}43$

C$.$ $$20,565\mathrm{.}17$ and $$4,513\mathrm{.}98($Correct Answer$)$

D$.$ $$20,565\mathrm{.}17$ and $$4,244\mathrm{.}78$

E$.$ None of these

$6.$ Kenneth has $$10,000$ he is placing in an investment that pays $6\%$ interest, compounded annually. If Kenneth makes no additional deposits and no withdrawals, how long would it take to grow the account to $$25,000?$

A$.11\mathrm{.}13$ years

B$.12\mathrm{.}88$ years

C$.13\mathrm{.}50$ years

D$.14\mathrm{.}27$ years

E$.15\mathrm{.}73$ years $($Correct Answer$)$

Please provide step by step solution to each question provided. Also, provide instruction on how to solve manually on a financial calculator for each question as well. Also, Can I get step by step instruction as well as solution for each problem in the set list. Not just, for one individual question.

Answer & Explanation Solved by verified expert

See Answer