James plans to fund his 23 james plans to fund his

23. James plans to fund his 23. James plans to fund his individual retirement account, beginning today, with 20 individual retirement account, beginning today, with 20
annual deposits of $2,000, which he will continue for the annual deposits of $2,000, which he will continue for the next 20 years. If he next 20 years. If he can can
earn an annual compound rate of earn an annual compound rate of
8 percent on his deposits, the 8 percent on his deposits, the amount in the account upon amount in the account upon retirement will be retirement will be
A. $19,636. A. $19,636.
B. $91,524. B. $91,524.
C. $98,846. C. $98,846.
D. $21,207. D. $21,207.
24. The rate of interest agreed upon 24. The rate of interest agreed upon contractually charged by a lender or promised contractually charged by a lender or promised
by a borrower is the by a borrower is the _________ interest rate. _________ interest rate.
25. Gina has planned to start 25. Gina has planned to start her college education four years from now. To her college education four years from now. To pay for pay for
her college education, she has decided to save $1,000 a her college education, she has decided to save $1,000 a quarter for the next four quarter for the next four
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years in a bank account years in a bank account paying 12 percent interest. How much will she paying 12 percent interest. How much will she have at the have at the
end of the fourth year? end of the fourth year?
26. The _________ is the annual rate of 26. The _________ is the annual rate of interest earned on a security interest earned on a security purchased on a purchased on a
given date and held to maturity. given date and held to maturity.
27. 27. _________ _________ yield yield curve curve reects reects lower lower expected expected future future rates rates of of interest. interest.
A. An upward sloping A. An upward sloping
B. A at B. A at
C. A downward sloping C. A downward sloping
D. A linear D. A linear