# finance data bank

Question # 00005282 Posted By: spqr Updated on: 12/13/2013 02:04 PM Due on: 12/15/2013
Subject Finance Topic Finance Tutorials:
Question

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

B. \$251,008.17
C. \$270,013.38
D. \$277,628.63
E. \$291,480.18

28. You hope 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
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

31. You just received a \$5,000 gift from your grandmother. You have decided to save this money so that you can gift it to your grandchildren 50 years from now. How much additional money will you have to gift to your grandchildren if you can earn an average of 8.5 percent instead of just 8 percent on your savings?
A. \$47,318.09
B. \$52,464.79
C. \$55,211.16
D. \$58,811.99
E. \$60,923.52

32. You are depositing \$1,500 in a retirement account today and expect to earn an average return of 7.5 percent on this money. How much additional income will you earn if you leave the money invested for 45 years instead of just 40 years?
A. \$10,723.08
B. \$11,790.90
C. \$12,441.56
D. \$12,908.19
E. \$13,590.93

33. You collect old coins. Today, you have two coins each of which is valued at \$250. One coin is expected to increase in value by 6 percent annually while the other coin is expected to increase in value by 4.5 percent annually. What will be the difference in the value of the two coins 15 years from now?
A. \$115.32
B. \$208.04
C. \$241.79
D. \$254.24
E. \$280.15

34. Your father invested a lump sum 26 years ago at 4.25 percent interest. Today, he gave you the proceeds of that investment which totaled \$51,480.79. How much did your father originally invest?
A. \$15,929.47
B. \$16,500.00
C. \$17,444.86
D. \$17,500.00
E. \$17,999.45

35. What is the present value of \$150,000 to be received 8 years from today if the discount rate is 11 percent?
A. \$65,088.97
B. \$71,147.07
C. \$74,141.41
D. \$79,806.18
E. \$83,291.06

36. You would like to give your daughter \$75,000 towards her college education 17 years from now. How much money must you set aside today for this purpose if you can earn 8 percent on your investments?
A. \$18,388.19
B. \$20,270.17
C. \$28,417.67
D. \$29,311.13
E. \$32,488.37

37. You want to have \$35,000 saved 6 years from now to buy a house. How much less do you have to deposit today to reach this goal if you can earn 5.5 percent rather than 5 percent on your savings? Today's deposit is the only deposit you will make to this savings account.
A. \$733.94
B. \$791.18
C. \$824.60
D. \$845.11
E. \$919.02

38. Your older sister deposited \$5,000 today at 8.5 percent interest for 5 years. You would like to have just as much money at the end of the next 5 years as your sister will have. However, you can only earn 7 percent interest. How much more money must you deposit today than your sister did if you are to have the same amount at the end of the 5 years?
A. \$321.19
B. \$360.43
C. \$387.78
D. \$401.21
E. \$413.39

39. A year ago, you deposited \$30,000 into a retirement savings account at a fixed rate of 5.5 percent. Today, you could earn a fixed rate of 6.5 percent on a similar type account. However, your rate is fixed and cannot be adjusted. How much less could you have deposited last year if you could have earned a fixed rate of 6.5 percent and still have the same amount as you currently will when you retire 38 years from today?
A. \$2,118.42 less
B. \$3,333.33 less
C. \$5,417.09 less
D. \$7,274.12 less
E. \$9,234.97 less

40. When you retire 40 years from now, you want to have \$1.2 million. You think you can earn an average of 12 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 2 years from today. How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit?
A. \$1,414.14
B. \$2,319.47
C. \$2,891.11
D. \$3,280.78
E. \$3,406.78

41. Theo needs \$40,000 as a down payment for a house 6 years from now. He earns 3.5 percent on his savings. Theo can either deposit one lump sum today for this purpose or he can wait a year and deposit a lump sum. How much additional money must he deposit if he waits for one year rather than making the deposit today?
A. \$878.98
B. \$911.13
C. \$1,138.90
D. \$1,348.03
E. \$1,420.18

42. One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn?
A. 6.59 percent
B. 6.67 percent
C. 6.88 percent
D. 6.92 percent
E. 7.01 percent

43. According to the Rule of 72, you can do which one of the following?
A. double your money in five years at 7.2 percent interest
B. double your money in 7.2 years at 8 percent interest
C. double your money in 8 years at 9 percent interest
D. triple your money in 7.2 years at 5 percent interest
E. triple your money at 10 percent interest in 7.2 years

44. Forty years ago, your mother invested \$5,000. Today, that investment is worth \$430,065.11. What is the average annual rate of return she earned on this investment?
A. 11.68 percent
B. 11.71 percent
C. 11.78 percent
D. 11.91 percent
E. 12.02 percent

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45. Sixteen years ago, Alicia invested \$1,000. Eight years ago, Travis invested \$2,000. Today, both Alicia's and Travis' investments are each worth \$2,400. Assume that both Alicia and Travis continue to earn their respective rates of return. Which one of the following statements is correct concerning these investments?
A. Three years from today, Travis' investment will be worth more than Alicia's.
B. One year ago, Alicia's investment was worth less than Travis' investment.
C. Travis earns a higher rate of return than Alicia.
D. Travis has earned an average annual interest rate of 3.37 percent.
E. Alicia has earned an average annual interest rate of 6.01 percent.

46. Penn Station is saving money to build a new loading platform. Two years ago, they set aside \$24,000 for this purpose. Today, that account is worth \$28,399. What rate of interest is Penn Station earning on this investment?
A. 6.39 percent
B. 7.47 percent
C. 8.78 percent
D. 9.23 percent
E. 9.67 percent

47. Fifteen years ago, Jackson Supply set aside \$130,000 in case of a financial emergency. Today, that account has increased in value to \$330,592. What rate of interest is the firm earning on this money?
A. 5.80 percent
B. 6.42 percent
C. 6.75 percent
D. 7.28 percent
E. 7.53 percent

48. Fourteen years ago, your parents set aside \$7,500 to help fund your college education. Today, that fund is valued at \$26,180. What rate of interest is being earned on this account?
A. 7.99 percent
B. 8.36 percent
C. 8.51 percent
D. 9.34 percent
E. 10.06 percent

49. Some time ago, Julie purchased eleven acres of land costing \$36,900. Today, that land is valued at \$214,800. How long has she owned this land if the price of the land has been increasing at 10.5 percent per year?
A. 13.33 years
B. 16.98 years
C. 17.64 years
D. 19.29 years
E. 21.08 years

50. On your ninth birthday, you received \$300 which you invested at 4.5 percent interest, compounded annually. Your investment is now worth \$756. How old are you today?
A. age 29
B. age 30
C. age 31
D. age 32
E. age 33
Tutorials for this Question
1. ## Solution: accounts data bank

Tutorial # 00005104 Posted By: spqr Posted on: 12/13/2013 10:16 PM
Puchased By: 2
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8.5 percent instead of just 8 percent on your savings? A. \$47,318.09 B. \$52,464.79 ...
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