ARE 142 Practice Questions _10-10-2009_

# ARE 142 Practice Questions _10-10-2009_ - ARE 142 Personal...

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ARE 142 Personal Finance Fall 2009 - Heather Rose Practice Questions These are questions to help you practice the skills we have been studying. These should give you a good sense of the type of mathematical questions I will ask on the exams. More importantly, many of them are the types of questions you’ll be asking yourself in the real world. Question 6 is the one I left you with at the end of our last lecture. I have provided answers to these questions on the last page. I will provide actual solutions (a description of how to solve them) later. Notes: Unless otherwise specified, assume that any interest rate I give is an annual interest rate and that it is paid out annually. Present Value, Future Value, Annuities 1. If I deposit \$10,000 into a savings account today with an interest rate of 8%, how much will I have 9 years from now? 2. Compared to question 1, how much more would you have if your annual interest rate of 8% was compounded quarterly instead of annually? 3.

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## This note was uploaded on 09/08/2010 for the course ARE ARE 142 taught by Professor Rose during the Winter '09 term at UC Davis.

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ARE 142 Practice Questions _10-10-2009_ - ARE 142 Personal...

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