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