Question
question 8 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
question 8
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 9
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 |
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