Question
21) One year ago, the Jenkins Family Fun Center deposited $3,600 in an investment account for the purpose of buying new equipment four years from
21) One year ago, the Jenkins Family Fun Center deposited $3,600 in an investment account for the purpose of buying new equipment four years from today. Today, it is adding another $5,000 to this account. It plans on making a final deposit of $7,500 to the account next year. How much will be available when it is ready to buy the equipment, assuming it earns a 7% rate of return?
$18,159.65 | |
$19,430.84 | |
$19,683.25 | |
$20,194.54 | |
$20,790.99 |
22) You just paid $330,000 for an annuity that will pay you and your heirs $11,800 a year forever. What rate of return are you earning on this policy?
3.73 percent | |
3.92 percent | |
3.58 percent | |
3.33 percent | |
3.64 percent |
23) What is the future value of $3,136 invested for 11 years at 6.00 percent compounded annually?
$5,973.95 | |
$5,932.18 | |
$1,587.75 | |
$5,595.88 | |
$5,953.06 |
24) You just won the lottery! As your prize you will receive $1,200 a month for 100 months. If you can earn 8% on your money, what is this prize worth to you today?
$87,003.69 | |
$87,380.23 | |
$87,962.77 | |
$88,104.26 | |
$90,723.76 |
25) Today is January 1. Starting today, Sam is going to contribute $140 on the first of each month to his retirement account. His employer contributes an additional 50% of the amount contributed by Sam. If both Sam and his employer continue to do this and Sam can earn a monthly rate of
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