Final Math Examples Answers - 1 1 SFL 260 Section 1,2,5 Dr...

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1 1 SFL 260- Section 1,2,5 Dr. E. Jeffrey Hill Final Exam Example Math Problems Winter 2016 85. You receive a $8,400 gift from your long lost uncle and invest it in a savings account at Bank of American Fork which pays 1.8% annual interest. After one year how much interest will you have earned? a. $151.20 8400 * .018 = 151.20 86. You and your spouse have brand new twin baby girls, and that makes three children. You realize that soon the time will come to become a real Mormon family and purchase a mini-van. If the estimated price of a two-year old, low-mileage Honda Odyssey mini-van in four years will be $18,000, how much money must you invest at the beginning of each month over the next four years if you can earn 3.75% annual interest with monthly compounding? a. <$347.08> Begin Mode PV = 0 I = 3.75/12 N = 4 * 12 FV = 18000 PMT = <347.08> 87. Dr. Hill is kind of weird with numbers. He likes the number 9. It’s his lucky number. So he invests $9,999.99 as a lump sum into a savings account which has monthly compounding. The interest rate is 9.99 percent per year. After 9 years how much interest will he have earned? a. $14,482.60 PV = <9999.99> I = 9.99/12 N=9 * 12 FV = 24,482.59 24482.59 future value – 9999.99 initial investment = 14482.60 interest earned
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2 88. You are applying for a loan and are required to submit a balance sheet with your net worth. You own a 2013 Lexus ES350 that you bought last month for $22,995. The Kelly Bluebook value for this car is $25,995. You owe $19,150 on the car loan for the Lexus. You pay off your Visa credit card every month and have not paid any credit card interest this year. The current Visa credit card balance is $5,522 and the next statement is due in 15 days. You have a student loan balance of $2,500. You presently have $925 in your checking account and $1,140 in your savings account. You own 200 shares of WalMart stock that you purchased for $95.50 per share. It is now selling for $188.42 per share. You own computers and other electronics that you purchased for $11,000 but could probably sell today on E-bay for $1,200. Your gross income is $110,000 per year. What is your current net worth? a. $39,772 Assets 25995 Lexus 925 checking account 1140 savings account 188.42 * 200 = 37684 WalMart stock 1200 electronics 66944 Total Assets Liabilities 19150 Lexus loan 5522 credit card balance 2500 student loan 27172 Total Liabilities 66944 Assets – 27172 Liabilities = 39772 Net Worth 89. Your net worth totals $27,500. If you have $50,000 in assets what is your total of liabilities?
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  • Spring '11
  • Kawai
  • Taxation in the United States, tax credit

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