28.

You have a home loan of $150,000. The interest rate is 5.5% and the loan is for 30 years, with monthly payments. If you make a ONE TIME extra principle payment of $10,000 in period number 18, how much do you SAVE in total interest paid over the life of the loan?

	$44,322.00
	$61,008.00
	$10,000.00
	$32,614.00

29.

How much must you invest per month in order to have $1,000,000, 30 years from now? Assume a 10.5% annual rate of interest with monthly compounding.

	$2,777.00
	$397.00
	$29,294.00
	$5,528.00

30.

You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces fat and carb-free Cheetos. The company stock is expected to earn a 14% annual return for the next 20 years. After the 20 years, how much money will you have?

	$589,098.00
	$1,135,877.00
	$618,457.00
	$765,908.00

31.

Assume you will retire in 25 years. You plan to be retired for a total of 25 years. You wish to withdraw the equivalent of $50,000 per year (in TODAY's dollars) from your retirement fund each year that you are retired (ASSUME that there will NOT be any adjustments for inflation DURING your retirement--You will withdraw the same dollar amount every year that you are retired). The expected inflation rate for the next 25 years is 3%. You can earn 10% on your investments prior to retirement and you plan to earn 7% on your investments during retirement. How much do you need to invest each month (beginning right now) in order to be able to afford to retire?

	$919.00
	$788.80
	$652.00
	$400.00

32.

You wish to have $1,000,000. You will invest $500 per month, earning 9.5% per year. How many months until you reach $1 million in total value?

	180
	358
	375
	No solution

34.

You have a home loan for $150,000. The annual interest is 5.5% and the number of payments (monthly payments) is 360. How much total INTEREST do you pay over the life of the loan?

	$156,606.00
	$300,000.00
	$150,000.00
	$306,606.00

36.

You are trying to choose between two investments: A--Invest $100 per month for 20 years, earning 11% annual rate of interest, OR, B--Invest $1,200 per year for 20 years, earning an 11% annual rate of interest. Which of the following is most correct?

	Investments A and B have identical future values.
	Investment A has the higher future value.
	There is no way to tell which investment has the higher future value.
	Investment B has the higher future value.

37.

You want to have the equivalent of $500,000 (in terms of today's spending power) when you retire in 30 years. Assume a 4% rate of annual inflation. If you can earn 12% annually, how much do you have to invest per year (starting now) in order to have your full amount of money needed at retirement?

	$8,544.00
	$11,355.00
	$46,620.00
	$6,719.00

38.

You invest $5,000 per year for 25 years. Earning 9% annual return, how much money do you have at the end of the 25 years?

	$544,876.00
	$423,504.00
	$251,456.00
	$105,255.00

39.

Your company's inventory turnover increased from 6.0 to 52.0. What does this mean?

	You have become less efficient at managing inventory.
	Your sales have definitely increased.
	You are selling all of your inventory more frequently.
	You are selling all of your inventory 6.0 times per year.

Select the correct answer