Test 4 Annuities: FV, PV, Pmt from FV & PV K-A [20 marks] Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Wilson makes monthly payments of $180 into an account that pays 4% per year, compounded monthly. How much money will be in his account in 3 years? a. $6873.00 c. $12 181.24 $76517.94 b. $6872.68 d. 2. Marco makes monthly payments of $75 into an account that pays 3.5% per year, compounded monthly. How much money will be in his account in 10 years? a. $10 757.44 C. $10 558.25 $11 160.98 b. $10 480.61 d. 3. Mohammed invested $6500 annually into a mutual fund that averaged 12% net growth per year with interest compounded annually. How much was his investment worth after 4 years? a. $31 065.63 c. $27 193.58 d. $34 892.00 b. $26 471.75 4. Ingrid invested $375 per month in a mutual fund that averaged 10.5% net growth per year with interest compounded monthly. How much was her investment worth after 6 years? a. $38 003.88 c. $37 391.67 d. $27 856.10 b. $37 391.68 5. A scholarship of $1500 will be awarded to one eligible high school student on each of the following 20 years. If the money can be invested at 10% per year, compounded annually, how much money is needed today to create the scholarship fund? a. $27 528.03 c. $18 693.32 d. $23 383.74 b. $12 770.35 6. An electronics retailer offers a payment plan at 4.5% annual interest, compounded monthly. Customers can pay for a home-theatre system by monthly payments of $247.56 for 2 years. What is the cost of the home- theatre system for a customer paying cash at the time of purchase? a. $6024.58 c. $5617.67 d. $6204.85 b. $5671.76 7. A furniture retailer offers a payment plan at 9.5% annual interest, compounded monthly. Customers can pay for a living room set by monthly payments of $316.45 for 16 months. What is the cost of the furniture for a customer paying cash at the time of purchase? a. $4731.35 b. $4816.52 c. $5029.29 d. $4738.08 8. A computer retailer offers a payment plan at 6.5% annual interest, compounded monthly. Customers can pay for a gaming system by monthly payments of $156.20 for 1 year. What is the cost of the gaming system for a customer paying cash at the time of purchase? a. $1810.04 b. $1931.26 c. $1721.06 d. $2010.26 9. Which is the lump-sum amount needed to generate a retirement income of $45 000 per year for 15 years, assuming interest at 7% per year, compounded annually? a. $450 452.65 c. $409 856.13 d. $644 514.51 b. $357 420.88 10. Which is the lump-sum amount needed to generate a retirement income of $36 000 per year for 25 years, assuming interest at 9% per year, compounded annually? a. $326 773.44 c. $357 443.00 d. $353 612.87 b. $349 438.02 11. Olivia has 2 years to repay a $13 000 business loan at 7.5% per year, compounded monthly. What monthly payment? a. $549.88 c. $584.99 d. $594.88 b. $548.99 12. $600 is invested quarterly for 4 years into a fund that pays 3.5% per year, compounded quarterly. Whi the correct values for PMT, i, and n