Choose the correct answer

6. A savings account is setup that pays 2% interest compounded daily. $500 is deposited on April 1. $190 is withdrawn on June 18. $265 is deposited on September 1. (Question 6-7) 6. What is the balance of the account on December 31? $____ *

$852.28

$582.28

$682.28

Other:

7. How much interest was earned by the account as of December 31? $____ *

$8.28

$14.28

$7.28

Other:

8. The parents of a newborn want to start a savings account for their daughter. They would like to have $20,000 in the account 18 years from now. How much money do they need to invest now in an account that pays 3.5% interest compounded daily, so that they reach their goal? *

$16,052.16

$10,652.16

$9,652.16

Other:

9. A local branch of Gamestop, Inc., deposited $12,500 in a savings account on July 3 and then deposited an additional $3450 in the account on August 5. Find the balance on October 1 assuming an interest rate of 3.5% compounded daily. *

$16,977.25

$10,677.25

$16,077.25

Other:

10. A fund worth $480,000 is expected to grow at 10% per year compounded annually for the next 2 years. (Question 10-11) 10. Find the expected future value. *

$680,800

$880,500

$580,800

Other:

11. If the funds were placed in an account yielding 6% compounded semiannually, what would be the current value of the fund? *

$615,034.99

$516,034.99

$156,034.99

Other: