Reference no: EM133495848

Question

1. A stock fund has a 14.2% annual return on investments in the first year and a -2.3% annual return on investments in the second year. What will be the return on a two-year investment of $3000?

a. $3139.59

b. $3347.20

c. $3504.80

d. $3912.49

2. Beth invested $2500 in a four-year GIC paying annual interest at a rate of 4.7%, compounded quarterly. What would be the value of the GIC at the end of the term?

a. $3004.19

b. $3013.78

c. $3015.98

d. $3157.94

3. A credit card statement indicates an annual interest rate of 18.1% to be charged on a daily basis on any overdue balance. What is the daily interest rate for this credit card?

a. 0.005%

b. 0.05%

c. 0.5%

d. 5%

4. A credit card statement indicates an annual interest rate of 16.7% to be charged on a daily basis on any overdue balance. What is the daily interest rate for this credit card?

a. 0.00046%

b. 0.0046%

c. 0.046%

d. 0.46%

5. A credit card company charges an annual interest rate of 18.7%, compounded daily, on any overdue balance. How much interest would have to be paid on an overdue balance of $548.00 for three days?

a. $0.28

b. $0.56

c. $0.84

d. $1.02

6. Use this credit card statement to answer the following questions.

MCrownbank

Credit Card STATEMENT

Account Number:

5663 xxxx xxxx 4748

$4600

Credit Limit: Daily ABM Cash Advance Limit:

$1000

Michael Renoir 27 Applegate Drive Centreville, ON M6K 3A7

Annual Interest Rate:

17.6%

Annual Fee:

Grace Period:

21 days

Cards Issued:

Minimum Payment:

greater of $10 or 30 of balance

The above statement is issued to Michael by his credit card company. If the statement date is September 16, what is the due date for any balance owing on the statement?

a. September 30

b. October 7

c. October 16

d. October 31

7. The above statement is issued to Michael by his credit card company. If the statement date is February 16, 2007, what is the due date for any balance owing on the statement?

a. February 28

b. March 9

c. March 31

d. April 3