accounts data bank with all solutions

| August 14, 2017

21. Gerold invested $6,200 in an account that pays 5
percent simple interest. How much money will he have at the end of ten
years?
A. $8,710
B. $9,000
C. $9,300
D. $9,678
E. $10,099

22. Alex invested $10,500 in an account that pays 6
percent simple interest. How much money will he have at the end of four
years?
A. $12,650
B. $12,967
C. $13,020
D. $13,256
E. $13,500

23. You invested $1,650 in an account that pays 5
percent simple interest. How much more could you have earned over a 20-year
period if the interest had compounded annually?
A. $849.22
B. $930.11
C. $982.19
D. $1,021.15
E. $1,077.94

24. Travis invested $9,250 in an account that pays 6
percent simple interest. How much more could he have earned over a 7-year
period if the interest had compounded annually?
A. $741.41
B. $773.58
C. $802.16
D. $833.33
E. $858.09

25. What is the future value of $7,189 invested for 23
years at 9.25 percent compounded annually?
A. $22,483.60
B. $27,890.87
C. $38,991.07
D. $51,009.13
E. $54,999.88

26. Today, you earn a salary of $36,000. What will be
your annual salary twelve years from now if you earn annual raises of 3.6
percent?
A. $55,032.54
B. $57,414.06
C. $58,235.24
D. $59,122.08
E. $59,360.45

27. You own a classic automobile that is currently
valued at $147,900. If the value increases by 6.5 percent annually, how much
will the automobile be worth ten years from now?
A. $244,035.00
B. $251,008.17
C. $270,013.38
D. $277,628.63
E. $291,480.18

28. You hope to buy your dream car four years from
now. Today, that car costs $82,500. You expect the price to increase by an
average of 4.8 percent per year over the next four years. How much will your
dream car cost by the time you are ready to buy it?
A. $98,340.00
B. $98,666.67
C. $99,517.41
D. $99,818.02
E. $100,023.16

29. This morning, TL Trucking invested $80,000 to help
fund a company expansion project planned for 4 years from now. How much
additional money will the firm have 4 years from now if it can earn 5 percent
rather than 4 percent on its savings?
A. $2,940.09
B. $3,651.82
C. $4,008.17
D. $4,219.68
E. $4,711.08

30. You just received $225,000 from an insurance
settlement. You have decided to set this money aside and invest it for your
retirement. Currently, your goal is to retire 25 years from today. How much
more will you have in your account on the day you retire if you can earn an
average return of 10.5 percent rather than just 8 percent?
A. $417,137
B. $689,509
C. $1,050,423
D. $1,189,576
E. $1,818,342

31. You just received a $5,000 gift from your
grandmother. You have decided to save this money so that you can gift it to
your grandchildren 50 years from now. How much additional money will you have
to gift to your grandchildren if you can earn an average of 8.5 percent instead
of just 8 percent on your savings?
A. $47,318.09
B. $52,464.79
C. $55,211.16
D. $58,811.99
E. $60,923.52

32. You are depositing $1,500 in a retirement account
today and expect to earn an average return of 7.5 percent on this money. How
much additional income will you earn if you leave the money invested for 45
years instead of just 40 years?
A. $10,723.08
B. $11,790.90
C. $12,441.56
D. $12,908.19
E. $13,590.93

33. You collect old coins. Today, you have two coins
each of which is valued at $250. One coin is expected to increase in value by 6
percent annually while the other coin is expected to increase in value by 4.5
percent annually. What will be the difference in the value of the two coins 15
years from now?
A. $115.32
B. $208.04
C. $241.79
D. $254.24
E. $280.15

34. Your father invested a lump sum 26 years ago at
4.25 percent interest. Today, he gave you the proceeds of that investment which
totaled $51,480.79. How much did your father originally invest?
A. $15,929.47
B. $16,500.00
C. $17,444.86
D. $17,500.00
E. $17,999.45

35. What is the present value of $150,000 to be
received 8 years from today if the discount rate is 11 percent?
A. $65,088.97
B. $71,147.07
C. $74,141.41
D. $79,806.18
E. $83,291.06

36. You would like to give your daughter $75,000
towards her college education 17 years from now. How much money must you set
aside today for this purpose if you can earn 8 percent on your
investments?
A. $18,388.19
B. $20,270.17
C. $28,417.67
D. $29,311.13
E. $32,488.37

37. You want to have $35,000 saved 6 years from now to
buy a house. How much less do you have to deposit today to reach this goal if you
can earn 5.5 percent rather than 5 percent on your savings? Today’s deposit is
the only deposit you will make to this savings account.
A. $733.94
B. $791.18
C. $824.60
D. $845.11
E. $919.02

38. Your older sister deposited $5,000 today at 8.5
percent interest for 5 years. You would like to have just as much money at the
end of the next 5 years as your sister will have. However, you can only earn 7
percent interest. How much more money must you deposit today than your sister
did if you are to have the same amount at the end of the 5 years?
A. $321.19
B. $360.43
C. $387.78
D. $401.21
E. $413.39

39. A year ago, you deposited $30,000 into a
retirement savings account at a fixed rate of 5.5 percent. Today, you could
earn a fixed rate of 6.5 percent on a similar type account. However, your rate
is fixed and cannot be adjusted. How much less could you have deposited last
year if you could have earned a fixed rate of 6.5 percent and still have the
same amount as you currently will when you retire 38 years from today?
A. $2,118.42 less
B. $3,333.33 less
C. $5,417.09 less
D. $7,274.12 less
E. $9,234.97 less

40. When you retire 40 years from now, you want to
have $1.2 million. You think you can earn an average of 12 percent on your
investments. To meet your goal, you are trying to decide whether to deposit a
lump sum today, or to wait and deposit a lump sum 2 years from today. How much
more will you have to deposit as a lump sum if you wait for 2 years before
making the deposit?
A. $1,414.14
B. $2,319.47
C. $2,891.11
D. $3,280.78
E. $3,406.78

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