finance data bank

21. Gerold invested $6,200 in an account that pays 5 percent simple interest. How much money will he have at the end of ten years?

A. $8,710

B. $9,000

C. $9,300

D. $9,678

E. $10,099

22. Alex invested $10,500 in an account that pays 6 percent simple interest. How much money will he have at the end of four years?

A. $12,650

B. $12,967

C. $13,020

D. $13,256

E. $13,500

23. You invested $1,650 in an account that pays 5 percent simple interest. How much more could you have earned over a 20-year period if the interest had compounded annually?

A. $849.22

B. $930.11

C. $982.19

D. $1,021.15

E. $1,077.94

24. Travis invested $9,250 in an account that pays 6 percent simple interest. How much more could he have earned over a 7-year period if the interest had compounded annually?

A. $741.41

B. $773.58

C. $802.16

D. $833.33

E. $858.09

25. What is the future value of $7,189 invested for 23 years at 9.25 percent compounded annually?

A. $22,483.60

B. $27,890.87

C. $38,991.07

D. $51,009.13

E. $54,999.88

26. Today, you earn a salary of $36,000. What will be your annual salary twelve years from now if you earn annual raises of 3.6 percent?

A. $55,032.54

B. $57,414.06

C. $58,235.24

D. $59,122.08

E. $59,360.45

27. You own a classic automobile that is currently valued at $147,900. If the value increases by 6.5 percent annually, how much will the automobile be worth ten years from now?

A. $244,035.00

B. $251,008.17

C. $270,013.38

D. $277,628.63

E. $291,480.18

28. You hope to buy your dream car four years from now. Today, that car costs $82,500. You expect the price to increase by an average of 4.8 percent per year over the next four years. How much will your dream car cost by the time you are ready to buy it?

A. $98,340.00

B. $98,666.67

C. $99,517.41

D. $99,818.02

E. $100,023.16

29. This morning, TL Trucking invested $80,000 to help fund a company expansion project planned for 4 years from now. How much additional money will the firm have 4 years from now if it can earn 5 percent rather than 4 percent on its savings?

A. $2,940.09

B. $3,651.82

C. $4,008.17

D. $4,219.68

E. $4,711.08

30. You just received $225,000 from an insurance settlement. You have decided to set this money aside and invest it for your retirement. Currently, your goal is to retire 25 years from today. How much more will you have in your account on the day you retire if you can earn an average return of 10.5 percent rather than just 8 percent?

A. $417,137

B. $689,509

C. $1,050,423

D. $1,189,576

E. $1,818,342