13. Gabby's little sister plans to start her college education four years from now. To pay...

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13. Gabby's little sister plans to start her college education four years from now. To pay for her college education, she has decided to save $1,000 each quarter for the next four years in a bank account paying 12 percent interest. How much will she have at the end of the fourth year? $1,574 $19,116 $20,157 $16,000 a. b. C. d. 2|Page 14. Hope deposits $2,000 per year at the end of the year for the next 15 years into an IRA account that currently pays 7%. How much will Hope have on deposit at the end of the 15 years? a. $39,981 $46,753 $49,002 $50,258 b. C. d. a. 15. If a Cayman Island Savings bond can be purchased for $29.50 and has a maturity value at the end of 25 years of $100, what is the annual rate of return on the bond? 5% 6% 7% 8% b. C. d. NPER: RATE: PV: PMT: FV: a. b. C. d. NPER: RATE: PV: PMT: FV: NPER: RATE: 16. Hunter would like to send his parents on a cruise for their 25th wedding anniversary. He expects the cruise will cost $15,000 and he has 5 years to accumulate this money. How much must Hunter deposit annually in an account paying 10 percent interest in order to have enough money to send his parents on the cruise? $1,862 $2,457 $3,000 $2,234 PV: PMT: FV: NPER: RATE: PV: PMT: FV: 17. Fiki, borrows $10,500 from the bank at 11 percent annually compounded interest to be repaid in six equal annual installments. The interest paid in the first year is a. b. C. d. a. b. 18. Kimani makes annual end-of-year payments of $5,043.71 on a four-year loan with an interest rate of 13 percent. The original principal amount was C. d. C. d. $1,155 $2,481 $144 $1,327 a. $24,462 $15,000 19. Cayla borrows $4,500 at 12 percent annually compounded interest to be repaid in four equal annual installments. The actual end-of-year payment is a. b. b. $3,092 $20,175 C. d. 3| Page $942 $1,125 $1,482 $2,641 Students: Remember! For an interest payment calculation like this, use the following formula: Principal x interest x time. Here the time is 1! 20. JP plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 10 years. If JP can earn 10 percent on his contributions, how much will he have at the end of the tenth year? NPER: RATE: PV: PMT: FV: $12,290 $20,000. $31,874. $51,880. NPER: RATE: PV: PMT: FV: NPER: RATE: PV: PMT: FV: 21. Isaiah wishes to accumulate $1 million by making equal annual end-of-year deposits over the next 20 years. If he can earn 10 percent on his investments, how much must he deposit at the end of each year? $14,900 $50,000 $117,453 $17,460 a. b. C. d. 22. Noah was given a gold coin originally purchased for $1 by his great-grandfather 50 years ago. Today the coin is worth $450. The rate of return realized on the sale of this coin is approximately equal to 8% 13% 50% cannot be determined with the given information Noah should not have sold the family heirloom-its priceless! a. b. C. d. e. b. 23. A lender offers Josh a $25,000, 10%, three-year loan that is to be fully amortized with three annual payments. The first payment will be due one year from the loan date. How much will Josh have to pay each year? a. C. d. C. NPER: RATE: PV: PMT: FV: $8,042 $9,026 $10,053 $11,120 d. NPER: RATE: PV: PMT: FV: 24. JBogg plans to fund his individual retirement account (IRA) with the maximum contribution of $2,500 at the end of each year for the next 30 years. If JBoog, can earn 10 percent on his contributions, how much will he have at the end of the tenth year? a. $411,235 b. -$411,235. $23,567. -$23,567. NPER: RATE: PV: PMT: FV: NPER: RATE: PV: PMT: FV: 13. Gabby's little sister plans to start her college education four years from now. To pay for her college education, she has decided to save $1,000 each quarter for the next four years in a bank account paying 12 percent interest. How much will she have at the end of the fourth year? $1,574 $19,116 $20,157 $16,000 a. b. C. d. 2|Page 14. Hope deposits $2,000 per year at the end of the year for the next 15 years into an IRA account that currently pays 7%. How much will Hope have on deposit at the end of the 15 years? a. $39,981 $46,753 $49,002 $50,258 b. C. d. a. 15. If a Cayman Island Savings bond can be purchased for $29.50 and has a maturity value at the end of 25 years of $100, what is the annual rate of return on the bond? 5% 6% 7% 8% b. C. d. NPER: RATE: PV: PMT: FV: a. b. C. d. NPER: RATE: PV: PMT: FV: NPER: RATE: 16. Hunter would like to send his parents on a cruise for their 25th wedding anniversary. He expects the cruise will cost $15,000 and he has 5 years to accumulate this money. How much must Hunter deposit annually in an account paying 10 percent interest in order to have enough money to send his parents on the cruise? $1,862 $2,457 $3,000 $2,234 PV: PMT: FV: NPER: RATE: PV: PMT: FV: 17. Fiki, borrows $10,500 from the bank at 11 percent annually compounded interest to be repaid in six equal annual installments. The interest paid in the first year is a. b. C. d. a. b. 18. Kimani makes annual end-of-year payments of $5,043.71 on a four-year loan with an interest rate of 13 percent. The original principal amount was C. d. C. d. $1,155 $2,481 $144 $1,327 a. $24,462 $15,000 19. Cayla borrows $4,500 at 12 percent annually compounded interest to be repaid in four equal annual installments. The actual end-of-year payment is a. b. b. $3,092 $20,175 C. d. 3| Page $942 $1,125 $1,482 $2,641 Students: Remember! For an interest payment calculation like this, use the following formula: Principal x interest x time. Here the time is 1! 20. JP plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 10 years. If JP can earn 10 percent on his contributions, how much will he have at the end of the tenth year? NPER: RATE: PV: PMT: FV: $12,290 $20,000. $31,874. $51,880. NPER: RATE: PV: PMT: FV: NPER: RATE: PV: PMT: FV: 21. Isaiah wishes to accumulate $1 million by making equal annual end-of-year deposits over the next 20 years. If he can earn 10 percent on his investments, how much must he deposit at the end of each year? $14,900 $50,000 $117,453 $17,460 a. b. C. d. 22. Noah was given a gold coin originally purchased for $1 by his great-grandfather 50 years ago. Today the coin is worth $450. The rate of return realized on the sale of this coin is approximately equal to 8% 13% 50% cannot be determined with the given information Noah should not have sold the family heirloom-its priceless! a. b. C. d. e. b. 23. A lender offers Josh a $25,000, 10%, three-year loan that is to be fully amortized with three annual payments. The first payment will be due one year from the loan date. How much will Josh have to pay each year? a. C. d. C. NPER: RATE: PV: PMT: FV: $8,042 $9,026 $10,053 $11,120 d. NPER: RATE: PV: PMT: FV: 24. JBogg plans to fund his individual retirement account (IRA) with the maximum contribution of $2,500 at the end of each year for the next 30 years. If JBoog, can earn 10 percent on his contributions, how much will he have at the end of the tenth year? a. $411,235 b. -$411,235. $23,567. -$23,567. NPER: RATE: PV: PMT: FV: NPER: RATE: PV: PMT: FV:

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SOLUTION 13 Gabbys little sister plans to start her college education four years from now To pay for her college education she has decided to save 100... View the full answer