Reference no: EM133181022
Questions -
Q1. Charlie calculates he can afford to set aside $400 into his investment account every month to save up for a house. If this account earns 9% and he makes deposits for 19 years, how much will be in the account when Charlie buys the house, and will Charlie have enough? The house costs $235,000.
a) $18,407.38 NO, not enough!
b) $2,197.52. NO, not enough!
c) $239,669.10. Yes, he will have enough!
d) $246,985.61 Yes, he will have enough!
Q2. PMT = $82 per month. At a rate of 7% per year, how much will accumulate (total) in the account after 4 years?
a) $3,424.34
b) $7,933.84
c) $108.41
d) $4,527.16
Q3. Sophie figures she can afford to deposit $60 into her investment account every month to build up a retirement. If this account earns 9.5% and she makes deposits for 37 years, how much will be in the account when Sophie retires?
a) $243,692.49
b) $1,989.23
c) $7350.35
d) $17,513.13
Q4. Andrew can afford to deposit $1,200 into his investment account every year. If this account earns 7% and he makes deposits for 15 years, how much will be in the account at the end of the 15 years?
a) $10,929.50
b) $380,354.76
c) $3,310.84
d) $30,154.83
Q5. PMT = $3,000 per year. At a rate of 8.00% per year, how much will accumulate (total) in the account after 12 years?
a) $56,931.38
b) $36,899.08
c) $22,608.23
d) $7,554.51
Q6. Logan figures he can afford to deposit $100 into his investment account every month to save up for his dream car. If this account earns 10.5% and he makes deposits for 6 years, how much will be in the account when Logan buys the car? The car costs $9,000. Will Logan have enough?
a) $187.25, NO, not enough!
b) $781.36. NO, not enough!
c) $5,325.11. NO, not enough!
d) $9,971.11, Yes, he will have enough!
Q7. PMT = $7,000 per year. At a rate of 6.50% per year, how much will accumulate (total) in the account after 13 years?
a) $60,198.19
b) $15,872.41
c) $65,323.20
d) $136,498.65
Q8. Shelby will invest $150 per month for the next 11 years. At a rate of 9.5% per year, how much money will Shelby have after 11 years?
a) $12,256.26
b) $29,943.73
c) $34,706.32
d) $424.76
Q9. PMT = $850 per month. At a rate of 8.5% per year, how much will accumulate (total) in the account after 28 years?
a) $1,165,756.02
b) $108,800.36
c) $346,562.33
d) $9,107.44
Q10. PMT = $300 per month. At a rate of 9.5% per year, how much will accumulate (total) in the account after 7 years?
a) $48,380.77
b) $35,598.53
c) $18,355.38
d) $581.82