Question: 13) How much interest will be earned in the next year on an investment paying 12% compounded annually if $100 was just credited to the

 13) How much interest will be earned in the next year

13) How much interest will be earned in the next year on an investment paying 12% compounded annually if $100 was just credited to the account for interest? 13) A) $200 B) $100 C) $88 D) $112 14) The present value of an annuity stream of S100 per year is S614 when valued at a 10% rate. By approximately how much would the value change if these were annuities due? 14) A) $6.14 x Number of years in annuity stream B) S10 C) S10 x Number of years in annuity stream D) $61.40 15) Eighteen years from now, 4 years of college are expected to cost $150,000. How much more must be deposited into an account today to fund this expense if you can earn only 15) 8% on your savings rather than the l 1% you hope to earn? C) S12.211.18 D)S14,006.41 A) S 14,614.03 B) $13,609.21 16) 16) You're ready to make the last of four equal, annual payments on a $1,000 loan with a 10% interest rate. If the amount of the payment is $31 5.47, how much of that payment is accrued interest? C) $31.55 D) $315.47 A) $28.68 B) S100.00 17) 17) How much can be accumulated for retirement if $2,000 is put aside at the end of each of the next 40 years? Assume that you can earn 9% a year on your savings. A) S802,876.27 B)S87,.200.00 C) $675,764.89 D) $736,583.73 18) A car dealer offers payments of $522.59 per month for 48 months on a $25,000 car after 18) making a $4,000 down payment. What is the loan's APR? B)6% c) 12% D) 9% 19 19) After reading the fine print in your credit card agreement, you find that the "low interest rate is actually an 1890 APR, or 1.5% per month. What is the effective annual rate? A) 19.41% B) 18.47% C) 19.56% D) 18.82% 20) Rosita purchased a bond for S989 that had a 7% coupon and semiannual interest 20) payments. She sold the bond after 6 months and earned a total return of 4.8% on this D) S1,001.47 21) If a bond offers an investor l 1% in nominal return during a year in which the rate of investment. At what price, did she sell the bond? A) $1,003.18 B) $974.28 C) $981.06 2) inflation is 4%, then the investor's real return is A) 10.56%. B) 15.44%. C) 6.73%. D) 6.31%

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