Bob has $2,500 invested in a bank that pays 5.4% annually. How long will it take for his funds to double? a. 16.34 years b. 13.18 years C. 13.44 years d. 14.89 years e. 12.92 years Suppose you borrowed $37,000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be? a. $9,136.59 b. $10,735.50 c. $11,420.74 d. $8,908.18 e. $9,707.63 How much would $20,000 due in 50 years be worth today if the discount rate were 7.5% ? a. $656.09 b. $618,45 c. $661.47 d. $451.74 e. $537.78 Your client is 34 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. a. If she follows your advice, how much money will she have at 65 ? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will she have at 70 ? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70 . If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65:$ Annual withdrawals if she retires at 70:$ Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 24.50%, with interest paid monthly, what is the card's EFF\%? a. 23.06% b. 28.82% c. 27.45% d. 32.66% e. 34.03% You inherited an oil well that will pay you $39,000 per year for 25 years, with the first payment being made today. If you think a fair return on the well is 7.5%, how much should you ask for it if you decide to sell it? a. $467,335.71 b. $387,888.64 c. $579,496.27 d. $565,476.20 e. $359,848.49 Bob has $2,500 invested in a bank that pays 5.4% annually. How long will it take for his funds to double? a. 16.34 years b. 13.18 years C. 13.44 years d. 14.89 years e. 12.92 years Suppose you borrowed $37,000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be? a. $9,136.59 b. $10,735.50 c. $11,420.74 d. $8,908.18 e. $9,707.63 How much would $20,000 due in 50 years be worth today if the discount rate were 7.5% ? a. $656.09 b. $618,45 c. $661.47 d. $451.74 e. $537.78 Your client is 34 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. a. If she follows your advice, how much money will she have at 65 ? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will she have at 70 ? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70 . If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65:$ Annual withdrawals if she retires at 70:$ Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 24.50%, with interest paid monthly, what is the card's EFF\%? a. 23.06% b. 28.82% c. 27.45% d. 32.66% e. 34.03% You inherited an oil well that will pay you $39,000 per year for 25 years, with the first payment being made today. If you think a fair return on the well is 7.5%, how much should you ask for it if you decide to sell it? a. $467,335.71 b. $387,888.64 c. $579,496.27 d. $565,476.20 e. $359,848.49
