Reference no: EM133130021
Questions -
Q1. Advertising. I know I have to write about advertising. What do I know about advertising? I know you have to market a product to a specific audience. Advertising is used to sell things like soft drinks or cars. I think I need to narrow down my choices of what to advertise. Advertisements can be written, heard, or seen. Should I have a visual advertisement on a new brand of energy drink? Which prewriting strategy is shown above?
Brainstorming
Freewriting
Clustering
Journalist Questions
Q2. Lonny is 42 years old and starting an IRA (individual retirement account). He is going to invest $350 at the beginning of each month. The account is expected to earn 1.5% interest, compounded monthly. How much money, rounded to the nearest dollar, will Lonny have in his IRA if he wants to retire at age 62?
$97,890
$98,012
$48,909
$49,032
Q3. Jack starts to save at age 40 for a vacation home that he wants to buy for his 50th birthday. He will contribute $1000 each quarter to an account, which earns 2.1% interest, compounded annually. What is the future value of this investment, rounded to the nearest dollar, when Jack is ready to purchase the vacation home?
$11,000
$11,231
$44,000
$44,924
Q4. Karen opens a savings account with $1500. She deposits $100 every month into the account that has a 0.85% interest rate, compounded annually. If she doesn't withdraw any money, what will the account balance be in 10 years?
$14,102.05
$14,208.04
$12,575.55
$12,469.56
Q5. Sarah knows that she needs $62,000 for a 25% down payment on a house she can afford. She found an investment that earns 1.25% interest compounding monthly. How much should she put in the account now, rounded to the nearest dollar, to ensure she has the down payment amount in 5 years?
$58,246
$54,722
$17,993
$29,423
Q6. Max has just won some money on a game show! He has the option to take a lump sum payment of $500,000 now or get paid an annuity of $4,900 per month for the next 10 years. Assuming the growth rate of the economy is 2.9% compounding annually over the next 10 years, which is the better deal for Max and by how much?
Lump Sum: by $77,462.75
Lump Sum: by $4,145.41
Annuity: by $88,000.00
Annuity: by $4,145.41