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13) How much interest will be earned in the next year on an investment paying 12% compounded annually if $100 was just credited to the

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13) How much interest will be earned in the next year on an investment paying 12% compounded annually if $100 was just credited to the account for interest? 13) A) $200 B) $100 C) $88 D) $112 14) The present value of an annuity stream of S100 per year is S614 when valued at a 10% rate. By approximately how much would the value change if these were annuities due? 14) A) $6.14 x Number of years in annuity stream B) S10 C) S10 x Number of years in annuity stream D) $61.40 15) Eighteen years from now, 4 years of college are expected to cost $150,000. How much more must be deposited into an account today to fund this expense if you can earn only 15) 8% on your savings rather than the l 1% you hope to earn? C) S12.211.18 D)S14,006.41 A) S 14,614.03 B) $13,609.21 16) 16) You're ready to make the last of four equal, annual payments on a $1,000 loan with a 10% interest rate. If the amount of the payment is $31 5.47, how much of that payment is accrued interest? C) $31.55 D) $315.47 A) $28.68 B) S100.00 17) 17) How much can be accumulated for retirement if $2,000 is put aside at the end of each of the next 40 years? Assume that you can earn 9% a year on your savings. A) S802,876.27 B)S87,.200.00 C) $675,764.89 D) $736,583.73 18) A car dealer offers payments of $522.59 per month for 48 months on a $25,000 car after 18) making a $4,000 down payment. What is the loan's APR? B)6% c) 12% D) 9% 19 19) After reading the fine print in your credit card agreement, you find that the "low interest rate is actually an 1890 APR, or 1.5% per month. What is the effective annual rate? A) 19.41% B) 18.47% C) 19.56% D) 18.82% 20) Rosita purchased a bond for S989 that had a 7% coupon and semiannual interest 20) payments. She sold the bond after 6 months and earned a total return of 4.8% on this D) S1,001.47 21) If a bond offers an investor l 1% in nominal return during a year in which the rate of investment. At what price, did she sell the bond? A) $1,003.18 B) $974.28 C) $981.06 2) inflation is 4%, then the investor's real return is A) 10.56%. B) 15.44%. C) 6.73%. D) 6.31%

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