MTH143Final_ReviewSpring10_usethis

# MTH143Final_ReviewSpring10_usethis - 2010 Spring 1 MTH 143...

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Spring MTH 143 Final Exam Review page 1 out of 9 1. If \$5,000 is loaned for 9 months at 7% annual rate, how much simple interest is earned? (A) \$262.50 (B) \$3150 (C) \$5262.50 (D) \$8150 (E) None of these 2. A loan (simple interest loan) of \$4,000 was repaid at the end of 8 months with a check of \$4,270. What annual rate of interest was charged? (A) 8.44% (B) 10.13% (C) 9.48% (D) 7.9% (E) None of these 3. If \$2,000 is invested at 7% compounded quarterly, what is the amount after 5 years? (A) \$2143.72 (B) \$2246.73 (C) \$4246.73 (D) \$2829.56 (E) None of these 4. In a suburb of a city, housing costs have been increasing at 5.2% per year compounded annually for past 8 years. A house with a \$116,000 value now would have had what value 8 years ago? (A) \$77,327.16 (B) \$174,013.79 (C) \$96,686.73 (D) \$38,672.84 (E) None of these 5. How much is the monthly payment for a four-year \$9000 car loan? Assume an annual interest rate of 8.9%. (A) \$6312.54 (B) \$223.54 (C) \$156.79 (D) \$2291.87 (E) None of these 6. Recently, Guarantee Life offered an annuity that pays 6.65% compounded quarterly. If \$500 is deposited into this annuity every quarter, how much is in the account after 10 years? (A) \$952.78 (B) \$58,632.58 (C) \$28,086.87 (D) 14,622.14 (E) None of these 7. Parents have set up a sinking fund in order to have \$120,000 in 15 years for their children’s college education. How much should be paid semiannually into an account paying 6.8% compounded semiannually? (A) \$2,363.07 (B) \$6,443.07 (C) \$1,496.39 (D) \$4,000 (E) None of these 8. American General offers a 10-year ordinary annuity with a guaranteed rate of 6.65% compounded annually. How much should you pay for one of these annuities if you want to receive payments of \$5,000 annually over the 10-year period? (A) \$67,472.11 (B) \$35,693.18 (C) \$370.52 (D) \$695.52 (E) None of these 9. If you buy a computer directly form the manufacturer for \$2,500 and agree to pay it in 48 equal installments at 1.25% interest per month on the unpaid balance, how much are your monthly payments? (A) \$72.64 (B) \$30.33 (C) \$52.08 (D) \$69.58 (E) None of these 10. A family has a \$75,000, 30-year mortgage at 8.1% compounded monthly. Find the monthly payment. (A) \$605.32 (B) \$555.56 (C) \$49.31 (D) \$208.33 (E) None of these 11. Which of the following investing accounts offer the highest effective rate? (A) Account A: investing at 12% compounded quarterly. (B) Account B: investing at 10% compounded monthly. (C) Account C: investing at 11% compounded semi-annually. (D) Account D: investing at 10% compounded annually.

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MTH143Final_ReviewSpring10_usethis - 2010 Spring 1 MTH 143...

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