Reference no: EM131360829
1. Find the amount that should be invested now to accumulate the following amount, if money is compounded as indicated. $16,900 at 8% compounded annually for 11 years
A) $7248.12 B) $7827.97 C) $9651.88 D) 39,404.70
2. Find the effective rate corresponding to the given nominal rate. Round results to the nearest 0.01 percentage points. 10% compounded monthly
A) 10.25% B) 10.38% C) 2.14% D) 10.47%
3. Find the future value of the following ordinary annuity.
R= $7500, i = 10% compounded semiannually for 4 years
A) $61,065.06 B) $99,825.00 C) $71,618.32 D) $221,618.32
4. In order to purchase a home, a family borrows $97,000 at 8.6% for 15 years. What is their monthly payment if interest is compounded monthly?
A) $695.17 B) $6843.60 C) $1106.20 D) $960.89
5. Find the present value of the future amount: $26,000 at 6% compounded semi-annually for 3 years.
A) $21774.59 B) $23793.68 C) $21830.10 D) $31045.36
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