Bucky Bavasi just bought a new TV that cost $2,500. He plans to finance the purchase with his new credit card which has a 21% nominal interest rate. The minimum payment on the card is $49 per month. If he makes the minimum payment and makes no other charges, how many months will it take before he pays off the card? a. 36.78 b. 128.75 C. 11.72 d. 35.23 e. None of these are correct Forest \& Main earned $3.50 per share five years ago. Its earnings this year were $7.00. What was the growth rate in earnings per share over the 5-year period? a. 10.00% b. 14.87% c. 20.00% d. 12.94% e. None of these are correct How much must the Big Boy invest today to spend $15,000 next year on a trip to Tahiti, $45,000 for a new car three years from today, and $30,000 per year for six years beginning at the end of year 4 for other fun stuff? He can earn 6.5% on his investments. a. $171,566.58 b. $200,350.55 C. $164,228.66 d. $179,381.45 e. None of these are correct QUESTION 11 How much money will Slats Slattery accumulate at the end of fifteen years if he presently has $100,000 and plans to invest $50,000 per year for the next ten years? He can earn 5.25% on his investments. a. $803,091.52 b. $606,345.99 C. $921,788.59 d. $1,037,231.18 e. None of these are correct Lucky just won the Power Ball lottery for $300,000,000. She has the option of receiving a $10,000,000 annuity for the next 30 years beginning today or a lump sum payment of $135,000,000 today. If she can earn 6.5% on her investments, which choice offers the highest financial yield at the end of 30 years? a. Lump Sum b. Annuity Monk Manley needs $50,000 to buy a new car. Slick Nick has offered to lend him the money if he agrees to repay $1,438.40 per month for the next 5 years. What annual interest rate is being charged on the loan? a. 21.46% b. 2.00% c. 24.00% d. 25.03% e. None of these are correct Megan Murray wishes to buy a boat in five years that presently costs $225,000. She expects the cost of the boat to increase due to inflation by 8% per year for the next two years and 9% per year the following three years. She also wants to spend $75,000 per year for 6 years beginning at the end of 10 years from today. How much must she save each year for the next 5 years if she can earn 6% on her investments? a. $109,179.63 b. $112,112.93 C. $108,898.97 d. $104,683.64 e. None of these are correct Horseman Pileggi borrowed $25,000 at a rate of 8% and must repay it in four equal installments at the end of each of the next 4 years. By how much would he reduce the amount he owes in the first year? a. $7548.02 b. $443.66 C. $5,548.02 d. $2,000.00 e. None of these are correct
