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21.What is the future value of $2,397.45 invested for fifteen years at 6.5 percent compounded annually?a.$5,827.32pv= -2397.45b.$6,023.44n=15c.$6,049.45i=6.5d.$6,165.86fv=6165.86e.$7,448.0522.You own a classic automobile that is currently valued at $39,500. If the value increases by 6 percent annually, how much will the auto be worth ten years from now?23.The first comic book featuring The Amazing Gitman was sold in 1938. In 2005, the estimated price for this comic book in good condition was about $15,465. This represented a return of 17.90 percent per year. For this to be true, the comic book must have sold for how much originally?
24.Forty years ago, your father invested $2,500. Today that investment is worth $107,921. What is the annual rate of return your father earned on his investment?25.On your third birthday, you received $100 which you invested at 4.5 percent interest, compounded annually. That investment is now worth $3,000. To the nearest year, how old are you today?
a.age 74i=4.5b.age 77pv= -100c.age 80fv=3000d.age 83n=7777+3=80e.age 8626.You just won the lottery! As your prize you will receive $14,400 a year for 10 years. If you can earn 10.39 percent per year on your money, what is this prize worth to you today?27.Jennifer T. wants to buy a car. She can pay only $160 a monthfor five years for a car. If the interest rate is 0.41 percent per month, how much can she afford to borrow (pv)to buy a car?28.You would like to establish a trust fund that will provide $50,000 a year forever(perpetuity) for your heirs. The trust fund is going to be invested very conservatively so the expected rate of return is only 2.75 percent. How much money must you deposit today to fund this gift for your heirs?29.Your credit card company quotes you a rate of 13.15 percent. Interest is billed monthly. What is the actual rate of interest you are paying?EAR=(1+apr/n)^n-1 n=frequency a.13.97 percentcalculator> eff fuctionb.14.90 percenteff(rate, frequency)c.15.48 percenteff(13.15,12)=13.97