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I need help solving these problems or providing a formula for each would help.?
My book got stolen so I didn't have the formulas to help. THANKS FOR THE HELP!
1. Luke invested $110 at 5% simple interest for a period of 6 years. How much will his investment be worth after 6 years?
a) $140.00
b) $143.00
c) $144.00
d) $142.00
e) $147.00
f) None of the above.
2. Mr. Smith wishes to retire in 11 years. When he retires he would like to have $500,000 in his bank account. Mr. Smith's bank pays 6% per year compounded annually. How much should he deposit now to attain his goal?
a) $263,395.76
b) $263,397.76
c) $263,393.76
d) $263,394.76
e) $263,396.76
f) None of the above.
3. A grandmother deposited $1,000 in an account that pays 6% per year compounded annually when her granddaughter was born. What will the value of the account be when the granddaughter reaches her 17th birthday?
a) $2,722.77
b) $2,692.77
c) $2,732.77
d) $2,682.77
e) $2,672.77
f) None of the above.
4. Jack and Tracy would like to have $10,000 for a down payment on a new condo. A savings account at their local credit union will pay 2% per year compounded monthly. How much should they deposit now in this account to have the down payment in 3 years?
a) $9,458.12
b) $9,388.12
c) $9,418.12
d) $9,448.12
e) $9,428.12
f) None of the above.
5. Stor-Away Co. needs to buy a new forklift. The company decides to deposit $3,700 in an account that earns 3% per year compounded semiannually. How much will the investment be worth in 2 years?
a) $3,957.05
b) $3,927.05
c) $3,907.05
d) $3,967.05
e) $3,887.05
f) None of the above.
6. John wishes to set up an account for his grandfather so that he can have some extra money each month. John wants his grandfather to be able to withdraw $130 per month for the next 4 years. How much must John invest today at 7% per year compounded monthly so that his grandfather can withdraw $130 per month for the next 4 years?
a) $5,438.83
b) $5,428.83
c) $5,448.83
d) $5,418.83
e) $5,398.83
f) None of the above.
7. John got a part time weekend job at a local restaurant to save for a new car. He plans on depositing $160 per month for the next 3 years in a savings account with a rate of 6% per year compounded monthly. How much will he have saved toward his down payment at the end of the 3 year period?
a) $6,293.78
b) $6,303.78
c) $6,323.78
d) $6,253.78
e) $6,273.78
f) None of the above.
8. Fred purchased a new car. His monthly payments are $550 per month. He will be paying on his car for 5 years, and the loan costs 9% per year compounded monthly. What was the original cost of the car?
a) $26,493.36
b) $26,492.36
c) $26,494.36
d) $26,499.36
e) $26,495.36
f) None of the above.
9. Jackson deposits $220 each month into a savings account earning interest at the rate of 5% per year compounded monthly. How much will he have in this account at the end of 7 years?
a) $22,071.30
b) $22,075.30
c) $22,076.30
d) $22,074.30
e) $22,072.30
f) None of the above.
10. Esther pays $467 per month for 6 years for a car. She made a down payment of $3,700. If the loan costs 7.1% per year compounded monthly, what was the cash price of the car?
a) $31,014.63
b) $45,469.53
c) $23,614.63
d) $27,314.63
e) $38,069.53
f) None of the above.
11. You borrowed $11,000 from your bank to build a small cabin on your property. The bank will charge 6% per year compounded quarterly. You decide to payoff this loan in 2 years by making quarterly payments. How much are your quarterly payments?
a) $1,449.42
b) $1,469.42
c) $1,499.42
d) $1,479.42
e) $1,439.42
f) None of the above.
12. Your brother would like to have $27,000 in 2 years for the purchase of a new car. What monthly payment should he make into an account paying 6% per year compounded monthly to attain his goal?
a) $1,091.66
b) $1,061.66
c) $1,081.66
d) $1,071.66
e) $1,031.66
f) None of the above.
13. A school realizes that they need a new copy machine for their main office. The copy machine costs $5,500. After speaking with the financial advisor, they decide to pay 20% of the cost of the machine in cash and finance the rest through their credit union. How much is their monthly payment if the credit union will charge 4% per year compounded monthly for 3 years?
a) $37.77
b) $27.77
c) $131.02
d) $109.91
e) $129.91
f) None of the above.
14. The Flores Family loves to go sailing on the weekends. Mr. Flores has decided to purchase a more spacious sailboat. The sailboat he is interested in buying in 4 years will cost him $25,000. An account at Invest Well Bank earns 2% per year compounded monthly. How much should Mr. Flores deposit in this account at the beginning of each month to be able to pay cash for the sailboat in 4 years?
a) $467.33
b) $534.09
c) $500.71
d) $607.48
e) $510.71
f) None of the above.
3 Answers
- ?Lv 78 years agoFavorite Answer
1).
Luke invested $110 at 5% simple interest for a period of 6 years.
How much will his investment be worth after 6 years?
b) $143.00
2).
Mr. Smith wishes to retire in 11 years.
When he retires he would like to have $500,000 in his bank account.
Mr. Smith's bank pays 6% per year compounded annually.
How much should he deposit now to attain his goal?
c) $263,393.76
3).
A grandmother deposited $1,000 in an account
that pays 6% per year compounded annually
when her granddaughter was born.
What will the value of the account be
when the granddaughter reaches her 17th birthday?
1000(1.06)^17
b) $2,692.77
4).
Jack and Tracy would like to have $10,000 for a down payment on a new condo.
A savings account at their local credit union will pay 2% per year compounded monthly.
How much should they deposit now in this account to have the down payment in 3 years?
$10,016.67
f) None of the above.
5).
Stor-Away Co. needs to buy a new forklift.
The company decides to deposit $3,700 in an account
that earns 3% per year compounded semiannually.
How much will the investment be worth in 2 years?
b) $3,927.05
6).
John wishes to set up an account for his grandfather
so that he can have some extra money each month.
John wants his grandfather to be able to withdraw
$130 per month for the next 4 years.
How much must John invest today at 7% per year compounded monthly
so that his grandfather can withdraw $130 per month for the next 4 years?
a) $5,438.83
b) $5,428.83
c) $5,448.83
d) $5,418.83
e) $5,398.83
f) None of the above.
7).
John got a part time weekend job at a local restaurant to save for a new car.
He plans on depositing $160 per month for the next 3 years
in a savings account with a rate of 6% per year compounded monthly.
How much will he have saved toward his down payment at the end of the 3 year period?
a) $6,293.78
b) $6,303.78
c) $6,323.78
d) $6,253.78
e) $6,273.78
f) None of the above.
8).
Fred purchased a new car.
His monthly payments are $550 per month.
He will be paying on his car for 5 years,
and the loan costs 9% per year compounded monthly.
What was the original cost of the car?
a) $26,493.36
b) $26,492.36
c) $26,494.36
d) $26,499.36
e) $26,495.36
f) None of the above.
9). Jackson deposits $220 each month into a savings account earning interest at the rate of 5% per year compounded monthly. How much will he have in this account at the end of 7 years?
a) $22,071.30
b) $22,075.30
c) $22,076.30
d) $22,074.30
e) $22,072.30
f) None of the above.
10).
Esther pays $467 per month for 6 years for a car.
She made a down payment of $3,700.
If the loan costs 7.1% per year compounded monthly,
what was the cash price of the car?
a) $31,014.63
b) $45,469.53
c) $23,614.63
d) $27,314.63
e) $38,069.53
f) None of the above.
11).
You borrowed $11,000 from your bank to build a small cabin on your property.
The bank will charge 6% per year compounded quarterly.
You decide to payoff this loan in 2 years by making quarterly payments.
How much are your quarterly payments?
a) $1,449.42
b) $1,469.42
c) $1,499.42
d) $1,479.42
e) $1,439.42
f) None of the above.
12).
Your brother would like to have $27,000 in 2 years for the purchase of a new car.
What monthly payment should he make into an account paying
6% per year compounded monthly to attain his goal?
a) $1,091.66
b) $1,061.66
c) $1,081.66
d) $1,071.66
e) $1,031.66
f) None of the above.
13).
A school realizes that they need a new copy machine for their main office.
The copy machine costs $5,500.
After speaking with the financial advisor,
they decide to pay 20% of the cost of the machine in cash
and finance the rest through their credit union.
How much is their monthly payment if the credit union will charge
4% per year compounded monthly for 3 years?
a) $37.77
b) $27.77
c) $131.02
d) $109.91
e) $129.91
f) None of the above.
14).
The Flores Family loves to go sailing on the weekends.
Mr. Flores has decided to purchase a more spacious sailboat.
The sailboat he is interested in buying in 4 years will cost him $25,000.
An account at Invest Well Bank earns 2% per year compounded monthly.
How much should Mr. Flores deposit in this account
at the beginning of each month to be able to pay cash for the sailboat in 4 years?
a) $467.33
b) $534.09
c) $500.71
d) $607.48
e) $510.71
f) None of the above.