.

..

Question 34 Which of the following will produce the highest future value for a positive amount of money deposited into an account today? 8 percent interest rate and the future date is 10 years from today. 6 percent interest rate and the future date is 13 years from today. 8 percent interest rate and the future date is 13 years from today. 6 percent interest rate and the future date is 10 years from today. Question 32 You and your twin brother are celebrating your 22nd birthday today. You both started working today. You are a finance major and wish to put your knowledge into practice, so you have decided to contribute $500 every month into your 401 K account with the first contribution taking place one month from today. Your twin brother, on the other hand, has decided to wait till he turns 35 to start contributing a constant amount of money every month into his 401 k plan. He says retirement is too far away to occupy his thoughts at this age. Both of you plan to retire the day you turn 67 years of age. Your (both you and your brother) accounts will return 7.92 percent per year. If your brother wishes to have the same amount of money as you expect to have at retirement, how much more will he need to contribute each month, than you do, when he starts contributing to his 401 K? $827 $384 O $973 $1,042 O $591 Question 29 You have a balance of $27,800 on your current credit card. The interest rate charged by this credit card is 16.8 percent compounded monthly. You plan to make monthly payment of $500. You just got an offer from another credit card to transfer your entire balance to the new card. The new credit card charges interest rate of 4.8 percent compounded monthly. By how many years will you shorten the length of time it will take you to pay off your balance if you transfer your balance to the new credit card and maintain the same planned monthly payment of $500? 2.7 years 4.9 years 6.2 years O 3.8 years O 7.7 years