Reference no: EM13810503

1. What is the future value of $1,210 a year for 7 years at a 9 percent rate of interest?

$11,132.53

$11,433.34

$11,694.20

$3,537.10

$9,232.30

2. One year ago, the Jenkins Family Fun Center deposited $4,700 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,500 to this account. They plan on making a final deposit of $8,700 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a 8 percent rate of return?

$25,011.27

$26,708.51

$25,631.64

$25,728.32

$24,094.06

3. George Jefferson established a trust fund that provides $181,500 in scholarships each year for worthy students. The trust fund earns a 3 percent rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest income is distributed?

$5,445,000

$6,050,000

$7,260,000

$4,356,000

$3,202,749

4. Your credit card company charges you 1.17 percent per month. What is the annual percentage rate on your account?

10.83 percent

9.89 percent

14.04 percent

9.66 percent

12.88 percent

5. You are paying an effective annual rate of 15.20 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account?

13.44 percent

17.27 percent

12.60 percent

14.23 percent

15.20 percent