Homework answers / question archive / Quiz Submissions - Quiz #1 Top of Form Attempt 1 Submission View Question 1     You placed $1,360 in a savings account today that earns an annual interest rate of 9 percent compounded annually

Quiz Submissions - Quiz #1 Top of Form Attempt 1 Submission View Question 1     You placed $1,360 in a savings account today that earns an annual interest rate of 9 percent compounded annually

Finance

Share With

---

Quiz Submissions - Quiz #1

Attempt 1

Submission View

Question 1

You placed $1,360 in a savings account today that earns an annual interest rate of 9 percent compounded annually. How much you will have in this account at the end of 17 years? Assume that all interest received at the end of the year is reinvested the next year.

Round the answer to two decimal places.

 

Question 2

The local home improvement store has a washing machine on sale for $601, with the payment due in 2 year(s) from today. The store is willing to discount the price at an annual rate of 9 percent (compounded annually) if you pay today. What is the amount if you pay for the washing machine today? Round the answer to two decimal places

 

Question 3

For the next 14 years, you decide to place $3,315 in equal year-end deposits into a savings account earning 8.03 percent per year. How much money will be in the account at the end of that time period? 

Round the answer to two decimal places.

 

Question 4

You have accumulated some money for your retirement. You are going to withdraw $63,260 every year at the end of the year for the next 19 years. How much money have you accumulated for your retirement? Your account pays you 19.83 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows.

Round the answer to two decimal places.

 

Question 5

Upon graduating from college, you make an annual salary of  $51,454. You set a goal to double it in the future. If your salary increases at an average annual rate of 8.28 percent, how long will it take to reach your goal?

Round the answer to two decimal places.

 

Question 6

12 years ago, Maria’s annual salary was $36,892. Today, she earns $85,736. What was the average annual growth rate of Maria's salary?

Round the answer to two decimal places in percentage form.

 

Question 7

What is the present value of the following annuity?
$1,021 every half year at the beginning of the period for the next 6 years, discounted back to the present at 8.93 percent per year, compounded semiannually.

Round the answer to two decimal places.

 

Question 8

A commercial bank will loan you $49,514 for 5 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 17.41 percent of the unpaid balance. What is the amount of the monthly payments?

Round the answer to two decimal places.

 

Question 9

You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 7.67 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan?

Round the answer to two decimal places in percentage form.

Question 10

Large-cap stocks had the nominal rates of return of 11.89 percent. The rate of inflation during the last year was 2.57 percent. What is the real rate of return for large-cap stocks?

Round the answer to two decimal places in percentage form.