70.2K

Verified Solution

Link Copied!

Present and future value tables of $1 at 3% are presented below:

N	FV $1	PV $1	FVA $1	PVA $1	FVAD $1	PVAD $1
1	1.03000	0.97087	1.0000	0.97087	1.0300	1.00000
2	1.06090	0.94260	2.0300	1.91347	2.0909	1.97087
3	1.09273	0.91514	3.0909	2.82861	3.1836	2.91347
4	1.12551	0.88849	4.1836	3.71710	4.3091	3.82861
5	1.15927	0.86261	5.3091	4.57971	5.4684	4.71710
6	1.19405	0.83748	6.4684	5.41719	6.6625	5.57971
7	1.22987	0.81309	7.6625	6.23028	7.8923	6.41719
8	1.26677	0.78941	8.8923	7.01969	9.1591	7.23028
9	1.30477	0.76642	10.1591	7.78611	10.4639	8.01969
10	1.34392	0.74409	11.4639	8.53020	11.8078	8.78611
11	1.38423	0.72242	12.8078	9.25262	13.1920	9.53020
12	1.42576	0.70138	14.1920	9.95400	14.6178	10.25262
13	1.46853	0.68095	15.6178	10.63496	16.0863	10.95400
14	1.51259	0.66112	17.0863	11.29607	17.5989	11.63496
15	1.55797	0.64186	18.5989	11.93794	19.1569	12.29607
16	1.60471	0.62317	20.1569	12.56110	20.7616	12.93794

You want to invest $39,000 today to accumulate $45,210 to buy a car. If you can invest at an interest rate of 3% compounded annually, how many years will it take to accumulate the required amount?

Multiple Choice

4 years.

7 years.

6 years.

5 years.

Present and future value tables of $1 at 9% are presented below.

N	FV $1	PV $1	FVA $1	FVAD $1	PVA $1	PVAD $1
1	1.09000	0.91743	1.0000	1.0900	0.91743	1.00000
2	1.18810	0.84168	2.0900	2.2781	1.75911	1.91743
3	1.29503	0.77218	3.2781	3.5731	2.53129	2.75911
4	1.41158	0.70843	4.5731	4.9847	3.23972	3.53129
5	1.53862	0.64993	5.9847	6.5233	3.88965	4.23972
6	1.67710	0.59627	7.5233	8.2004	4.48592	4.88965

You want to invest $7,200 annually beginning now in order to accumulate $35,210 for a down payment on a house. If you can invest at an interest rate of 9% compounded annually, about how many years will it take to accumulate the required amount?

Multiple Choice

3 years.

6 years.

4 years.

5 years.

Present and future value tables of $1 at 3% are presented below:

N	FV $1	PV $1	FVA $1	PVA $1	FVAD $1	PVAD $1
1	1.03000	0.97087	1.0000	0.97087	1.0300	1.00000
2	1.06090	0.94260	2.0300	1.91347	2.0909	1.97087
3	1.09273	0.91514	3.0909	2.82861	3.1836	2.91347
4	1.12551	0.88849	4.1836	3.71710	4.3091	3.82861
5	1.15927	0.86261	5.3091	4.57971	5.4684	4.71710
6	1.19405	0.83748	6.4684	5.41719	6.6625	5.57971
7	1.22987	0.81309	7.6625	6.23028	7.8923	6.41719
8	1.26677	0.78941	8.8923	7.01969	9.1591	7.23028
9	1.30477	0.76642	10.1591	7.78611	10.4639	8.01969
10	1.34392	0.74409	11.4639	8.53020	11.8078	8.78611
11	1.38423	0.72242	12.8078	9.25262	13.1920	9.53020
12	1.42576	0.70138	14.1920	9.95400	14.6178	10.25262
13	1.46853	0.68095	15.6178	10.63496	16.0863	10.95400
14	1.51259	0.66112	17.0863	11.29607	17.5989	11.63496
15	1.55797	0.64186	18.5989	11.93794	19.1569	12.29607
16	1.60471	0.62317	20.1569	12.56110	20.7616	12.93794

Today, Thomas deposited $160,000 in a 2-year, 12% CD that compounds quarterly. What is the maturity value of the CD?

Multiple Choice

$202,683.

$291,357.

$272,699.

$169,600.

Answer & Explanation Solved by verified expert

See Answer