test 2 - 1 21st bday you just decided to start saving m1y so you can retire early Gonna save \$500 a month starting 1 month from now accumulate \$1

# test 2 - 1 21st bday you just decided to start saving m1y...

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1.21st bday & you just decided to start saving m1y so you can retire early. Gonna save \$500 a month starting 1 month from now. accumulate \$1 million. earn an average of 8 % on your savings, how old will you be when you retire? 54.39 years 2.4-year annuity of eight \$6,200 semiannual payments will begin 6 years from now, w/ the first payment coming 6.5 years from now. discount rate is 7 % comp. semiannually, value of this annuity 4 years from now?\$37,139.58 56. Explain the Rule of 72. 3.A credit card has an annual %age rate of 12.9 % & charges interest monthly. The effective annual rate on this account: greater than 12.9 %. 4.An ordinary annuity, but not a perpetuity? \$25 paid weekly for 1 year, starting 1 week from today 5.Anna pays 1.5 % interest monthly on her credit card account. When the interest rate on that debt is expressed as if it were compounded only annually, the rate would be: effective annual rate. 6.Anne plans to save \$40 a week for the next 5 years. She expects to earn 3 % for the first 2 years & 5 % for the last 3 years. How much will her savings be worth at the end of the 5 years?. \$11,708.15 7.Annuity present value formula? A. C 8.Appalachian Bank offers you a \$135,000, 9-year term loan at 7.5 % annual interest. annual loan payment be?. \$21,163.57 9.Appropriate discount rate for the following cash flows is 11.7 % per year, what is the present value of the cash flows? 78,270.77 57.Assume the total cost of a college education will be \$285,000 when your child enters college in 22 years. You presently have \$35,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? 10.00 % 58.At 14 % interest, how long does it take to quadruple your m1y? 10.58 years 27.Ben invested \$5,000 twenty years ago w/ an insurance company that has paid him 5 % simple interest on his funds. Charles invested \$5,000 twenty years ago in a fund that has paid him 5 % interest, compounded annually. How much more interest has Charles earned than Ben over the past 20 years? \$3,266.49 10.Berkley Trucking recently purchased a truck costing \$147,800. financed this purchase at 7.6 % interest w/ monthly payments of \$2,100. years will it take to pay off this debt? 11.Bill just financed a used car through his credit union. His loan requires payments of \$275 a month for 5 years. Assuming that all payments are paid timely, last payment will pay off the loan in full. type of loan does he have? Amortized