Find the accumulated amount at the end of 6 months on a $160 bank deposit paying simple interest at a rate of 4% per year. a) $167.20 b) $163.20 c)...

Find the accumulated amount at the end of 6 months on a $160 bank deposit paying simple interest at a rate of 4% per year.

a) $167.20

b) $163.20

c) $165.20

d) $161.20

e) $166.20

f) None of the above.

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Question 2

Mr. Smith wishes to retire in 13 years. When he retires he would like to have $300,000 in his bank account. Mr. Smith's bank pays 8% per year compounded annually. How much should he deposit now to attain his goal?

a) $110,306.38

b) $110,309.38

c) $110,305.38

d) $110,307.38

e) $110,311.38

f) None of the above.

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Question 3

A grandmother deposited $1,000 in an account that pays 8% per year compounded annually when her granddaughter was born. What will the value of the account be when the granddaughter reaches her 13th birthday?

a) $2,729.62

b) $2,719.62

c) $2,689.62

d) $2,699.62

e) $2,709.62

f) None of the above.

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Question 4

In order to purchase a new freezer in 2 years, the Steakhouse Restaurant has decided to deposit $1,000 in an account that earns 2% per year compounded monthly for 2 years. How much money will be in the account in 2 years?

a) $1,050.78

b) $1,030.78

c) $1,070.78

d) $1,010.78

e) $1,040.78

f) None of the above.

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Question 5

Stor-Away Co. needs to buy a new forklift. The company decides to deposit $2,300 in an account that earns 2% per year compounded semiannually. How much will the investment be worth in 2 years?

a) $2,363.39

b) $2,413.39

c) $2,393.39

d) $2,423.39

e) $2,353.39

f) None of the above.

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Question 6

John wishes to set up an account for his grandfather so that he can have some extra money each month. John wants his grandfather to be able to withdraw $140 per month for the next 4 years. How much must John invest today at 8% per year compounded monthly so that his grandfather can withdraw $140 per month for the next 4 years?

a) $5,714.67

b) $5,764.67

c) $5,694.67

d) $5,734.67

e) $5,724.67

f) None of the above.

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Question 7

John got a part time weekend job at a local restaurant to save for a new car. He plans on depositing $120 per month for the next 4 years in a savings account with a rate of 4% per year compounded monthly. How much will he have saved toward his down payment at the end of the 4 year period?

a) $6,195.15

b) $6,205.15

c) $6,235.15

d) $6,215.15

e) $6,255.15

f) None of the above.

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Question 8

Fred purchased a new car. His monthly payments are $500 per month. He will be paying on his car for 6 years, and the loan costs 10% per year compounded monthly. What was the original cost of the car?

a) $26,987.33

b) $26,992.33

c) $26,986.33

d) $26,990.33

e) $26,989.33

f) None of the above.

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Question 9

Jackson deposits $130 each month into a savings account earning interest at the rate of 5% per year compounded monthly. How much will he have in this account at the end of 8 years?

a) $15,308.27

b) $15,306.27

c) $15,304.27

d) $15,310.27

e) $15,305.27

f) None of the above.

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Question 10

Esther pays $532 per month for 6 years for a car. She made a down payment of $2,500. If the loan costs 7.1% per year compounded monthly, what was the cash price of the car? 

a) $31,116.45

b) $45,083.28

c) $33,616.45

d) $28,616.45

e) $50,083.28

f) None of the above.

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Question 11

You borrowed $11,000 from your bank to build a small cabin on your property. The bank will charge 10% per year compounded quarterly. You decide to payoff this loan in 2 years by making quarterly payments. How much are your quarterly payments?

a) $1,524.14

b) $1,544.14

c) $1,554.14

d) $1,534.14

e) $1,494.14

f) None of the above.

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Question 12

Your brother would like to have $24,000 in 3 years for the purchase of a new car. What monthly payment should he make into an account paying 6% per year compounded monthly to attain his goal?

a) $630.13

b) $640.13

c) $650.13

d) $610.13

e) $600.13

f) None of the above.

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Question 13

A school realizes that they need a new copy machine for their main office. The copy machine costs $4,500. After speaking with the financial advisor, they decide to pay 15% of the cost of the machine in cash and finance the rest through their credit union. How much is their monthly payment if the credit union will charge 2% per year compounded monthly for 2 years?

a) $23.25

b) $208.03

c) $162.72

d) $13.25

e) $172.72

f) None of the above.

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Question 14

The Flores Family loves to go sailing on the weekends. Mr. Flores has decided to purchase a more spacious sailboat. The sailboat he is interested in buying in 2 years will cost him $20,000. An account at Invest Well Bank earns 2% per year compounded monthly. How much should Mr. Flores deposit in this account at the beginning of each month to be able to pay cash for the sailboat in 2 years?

a) $768.04

b) $817.47

c) $986.35

d) $916.91

e) $827.47

f) None of the above.