Grannie puts S3 5,000 into a bank account earning 8%. You can't withdraw the money until the balance has doubled. 9 A) 5 years B) 7 years How long will you have to leave the money in the account? C) 9 years D) 11 years 10. How much would you have to save today at 6% to have$30,000 available for the purchase of a car three years from now assuming that the interest is compounded monthly? A) S27,328 B) $25,975 C) $26,832 D) $25,069 11. Your parents agree to pay half of the purchase price of a new car when you graduate from college. You will graduate and buy the car 3 years from now. You have S 15,000 to invest today and can earn annual rate of 5% but compounded monthly on invested funds. If your parents pay what they have agreed to pay, what is the maximum you can spend on the new car? A) $34,844 B) S36,032 C) $23,229 D) $17,422 12. Your annual mortgage payment on your house is S32.000. It is a 30-year mortgage at 4.00% annually. How much did you borrow? A) S645,280 B) $553,345 C) $497.980 D) $702,363 13. You are offerod an investment that requires you to put up $,783.15 today in exchange for $15,000 10 years from now. What is the annual rate of return (the intcrest rate carned) on this investment? A) 9% B) 10% C) D) 11% 12% 14. You need to borrow $45,000 to buy a truck. The current loan rate is 5% compounded monthly and you want to pay the loan off in equal monthly payments over 5 years. What is the size of your monthly payment? A) S623.45 B) $754.51 C) $849.21 D) $883.32 15, what is the effective annual rate or EAR if APR is 6% compounded monthly? A) B) 6.17% 627% C) D) 6.37% 647% 8