# James plans to fund his 23 james plans to fund his

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23. James plans to fund his23. James plans to fund his individual retirement account, beginning today, with 20individual retirement account, beginning today, with 20annual deposits of \$2,000, which he will continue for theannual deposits of \$2,000, which he will continue for the next 20 years. If henext 20 years. If he cancanearn an annual compound rate of earn an annual compound rate of 8 percent on his deposits, the8 percent on his deposits, the amount in the account uponamount in the account upon retirement will beretirement will beA. \$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 upon24. The rate of interest agreed upon contractually charged by a lender or promisedcontractually charged by a lender or promisedby a borrower is theby a borrower is the _________ interest rate._________ interest rate.
25. Gina has planned to start25. Gina has planned to start her college education four years from now. Toher college education four years from now. To pay forpay forher college education, she has decided to save \$1,000 aher college education, she has decided to save \$1,000 a quarter for the next fourquarter for the next fourPagePage4 of of1818
years in a bank accountyears in a bank account paying 12 percent interest. How much will shepaying 12 percent interest. How much will she have at thehave at theend of the fourth year?end of the fourth year?
26. The _________ is the annual rate of26. The _________ is the annual rate of interest earned on a securityinterest earned on a security purchased on apurchased on agiven date and held to maturity.given date and held to maturity.
27.27.__________________ yieldyield curvecurve reectsreects lowerlower expectedexpected futurefuture ratesrates ofof interest.interest.A. An upward slopingA. An upward slopingB. A atB. A atC. A downward slopingC. A downward slopingD. A linearD. A linear

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