1. Gerold invested $110 in an account that pays 6 percent simple interest. How much money will he have at the end of 6 years? $137.50 $155.58 $142.12 $149.60 $143.00 2. You invested $1,400 in an account that pays 4 percent simple interest. How much more could you have earned over a 4-year period if the interest had compounded annually? $23.78 $13.80 $13.24 $14.49 $13.11 3. What is the future value of $3,040 invested for 11 years at 6.00 percent compounded annually? $5,770.83 $5,749.95 $5,424.58 $1,539.15 $5,791.71 4. Phil can afford $160 a month for 5 years for a car loan. If the interest rate is 5.7 percent, how much can he afford to borrow to purchase a car? $9,600.00 $8,448.00 $7,224.21 $8,502.83 $8,336.11 5. You are borrowing $5,560 to buy a car. The terms of the loan call for monthly payments for 3 years at a 5.50 percent interest. What is the amount of each payment? $141.86 $167.89 $179.43 $142.41 $182.85 6. Atlas Insurance wants to sell you an annuity which will pay you $600 per quarter for 30 years. You want to earn a minimum rate of return of 6.0 percent. What is the most you are willing to pay as a lump sum today to buy this annuity? rev: 10_10_2012 $29,639.44 $33,035.59 $33,299.07 $29,297.81 $27,877.88 7. Some time ago, Julie purchased eleven acres of land costing $14,490. Today, that land is valued at $52,215. How long has she owned this land if the price of the land has been increasing at 6 percent per year? 21.67 years 21.72 years 22.13 years 22.00 years 21.51 years 8. Wicker Imports established a trust fund that provides $164,300 in scholarships each year for needy students. The trust fund earns a 3.00 percent rate of return. How much money did the firm contribute to the fund assuming that only the interest income is distributed? $2,899,237.80 $5,476,666.67 $2,464,500.00 $4,929,000.00 $6,572,000.00 9. Your credit card company charges you 1.00 percent per month. What is the annual percentage rate on your account? 13.50 percent 10.20 percent 11.00 percent 12.00 percent 10.00 percent 10. One year ago, you invested $2,830. Today it is worth $3,700.50. What rate of interest did you earn? 30.45 percent 23.52 percent 30.76 percent 30.71 percent 23.99 percent