Barry Cuda would like to save $210,000 over the next 20 years

1. Barry Cuda would like to save $210,000 over the next 20 years. He will assume that his account will earn 6% annually. If Barry decides to make annual end of year deposits, how much would he need to deposit annually?

   $4,475

   $5,709

   $4,716

   $5,132

1 points

1. Barry Cuda would like to save $210,000 over the next 20 years. He will assume that his account will earn 6% annually. If Barry knows today that he will be given $75,000 in 15 years as part of an inheritance, how much additionally would he need to deposit annually over the next 20 years to reach his goal?

   $4,711

   $2,981

   $822

   $3,670

1 points

1. Bob Katz is purchasing a new Honda Pilot for $38,000. He is financing $30,000 with a six year, 4% loan with annual payments. Construct an amortization schedule, in the 2nd year row, corresponding to his second annual payment, what is the dollar amount of the interest portion of his payment?

   $1,200

   $1,520

   $986

   $1,019

1 points

1. Sally Mander is planning on retiring in 30 years and she believes that she will live for 25 years after she retires. To play it safe, Sally would like to set up a retirement plan that will pay herself a fixed amount forever. Assuming 9% interest and annual deposits of $7500 over the next 30 years that she is working, and 6% interest forever after she retires, how much will Sally receive annually once she retires?

   $61,340

   $64,023

   $67,885

   $70,416

1 points

1. Regarding the present value of an annuity, an annuity due will always be worth more to you today than a regular annuity.

   True

   False