Question 13 pts

You will put $50 per month into a savings account for one of your children. The account earns an annual rate of 3% (with monthly compounding). After 18 years, what is the balance in the account?

Group of answer choices

47,566.00

85.00

14,297.00

986,179.00

Flag question: Question 2Question 23 pts

You invest $10,000 per year in a pair of IRAsone for you and one for your spouse (Consider the $10,000 total as a single payment for this problem). The investment you've chosen in the IRAs has been earning 8.5% annually. If the investment continues to earn this same average, what the total amount be after 30 years?

Group of answer choices

332,950.00

621,351.00

115,582.00

1,242,147.00

Flag question: Question 3Question 33 pts

PMT = $100 per year, N = 25 years, I = 10%. Calculate FV.

Group of answer choices

123.00

1,083.00

9,834.00

2,766.00

Flag question: Question 4Question 43 pts

You will invest $300 per month into an account that pays 5% per year (but with monthly compounding). After 25 years how much money do you have?

Group of answer choices

178,652.00

244,303.00

201,201.00

121,351.00

Flag question: Question 5Question 53 pts

PMT = $100 per month; I = 10% per year; N = 120 months. Calculate FV.

Group of answer choices

98,708,068.00

20,484.00

1,593.00

270.00

Flag question: Question 6Question 63 pts

Tom was injured and disabled at work. The insurance company is currently paying him $75,000 per year. This will continue for 40 years. If the insurance company offers Tom a single amount today, in exchange for eliminating the annual payments, how much should Tom ask for (today)? Assume an interest rate of 8%.

Group of answer choices

356,213.00

1,788,909.00

894,346.00

701,222.00

Flag question: Question 7Question 73 pts

You want to borrow money to buy a boat. You can afford payments of $100 per month. You expect the loan period to be five years. Interest rates on boat loans are currently at 9% per year. How much can you afford to spend on the boat?

Group of answer choices

2,212.00

9,125.00

6,322.00

4,817.00

Flag question: Question 8Question 83 pts

You want to buy a car. The salesman refuses to tell you the actual price of the car; he only tells you that the payment is $199.00 per month, the rate is 8% interest, and it is a five year loan. Calculate the price of the car, based on this information.

Group of answer choices

9,814.00

6,522.00

11,777.00

12,240.00

Flag question: Question 9Question 93 pts

PMT = $5,000 per year; I = 8.6% per year; N = 15 years. Calculate the PV.

Group of answer choices

58,120.00

12,356.00

29,001.00

41,273.00

Flag question: Question 10Question 103 pts

You can afford a loan payment of $800 per MONTH on a house. The loan is for 30 years. The rate is 5% annually. How much can you borrow today?

Group of answer choices

177,812.00

212,900.00

261,099.00

149,025.00