Question 1

Use the compound interest formula to compute the future value of the investment.
-$3250 at 5.5% compounded daily for 15 years (assume 360 days per year)

Accepted Answer

A) $3257.46 
B) $4079.97 
C) $7255.55 
D) $7415.65 
A) $3257.46 
B) $4079.97 
C) $7255.55 
D) $7415.65

Question 2

Solve the problem. Use an annual percentage rate table if necessary.
-Sarah Yost took out a 48-month fixed installment loan of $20,000 to open a gift shop. She began making monthly payments of $507.25. Sarah's business does better than expected and instead of
Making her 36th payment, Sarah decides to repay her loan in full. How much interest will Sarah
Save (use the actuarial method)?

Accepted Answer

A) $332.29 
B) $290.89 
C) $317.33 
D) $334.79 
A) $332.29 
B) $290.89 
C) $317.33 
D) $334.79

Question 3

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date.
-Amount Financed: $2500 Regular Monthly Payment: $55.61
Total Number of Payments scheduled: 60
Loan repaid in full instead of making: 36th payment

Accepted Answer

A) $151.61 
B) $173.24 
C) $153.34 
D) $146.95 
A) $151.61 
B) $173.24 
C) $153.34 
D) $146.95

Question 4

Solve the problem.
-Miguel invests his money in a savings account which gives an effective annual yield of 3.5%. The nominal rate is 3.45%. How often does compounding occur - daily, monthly, quarterly, or
Semiannually?

Accepted Answer

A) quarterly 
B) monthly 
C) semiannually 
D) daily 
A) quarterly 
B) monthly 
C) semiannually 
D) daily

Question 5

Find the finance charge on the open-end charge account. Assume interest is calculated on the unpaid balance of the account.
-Unpaid Balance $\$ 611.60$ Monthly Interest Rate  $1 \frac { 1 } { 2 } \%$

Accepted Answer

A)  $\$ 9.17$ 
B)  $\$ 7.64$ 
C)  $\$ 9.17$. 
D)  $\$ 11.01$ 
A)  $\$ 9.17$ 
B)  $\$ 7.64$ 
C)  $\$ 9.17$. 
D)  $\$ 11.01$

Question 6

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Amount Financed: $4500 Regular Monthly Payment: $184.50
Total Number of Payments scheduled: 36
Loan repaid in full instead of making: 18th payment

Accepted Answer

A) $632.47 
B) $549.97 
C) $593.97 
D) $520.20 
A) $632.47 
B) $549.97 
C) $593.97 
D) $520.20

Question 7

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Finance charge: $24,359 Total number of payments: 38
Remaining number of payments, when paid in full: 5

Accepted Answer

A) $346.50 
B) $519.75 
C) $328.73 
D) $493.10 
A) $346.50 
B) $519.75 
C) $328.73 
D) $493.10

Question 8

Find the total return earned by the given bond.
-

Accepted Answer

A)  $\$ 1040$ 
B)  $\$ 26,000$ 
C)  $\$ 3120$ 
D)  $\$ 260$ 
A)  $\$ 1040$ 
B)  $\$ 26,000$ 
C)  $\$ 3120$ 
D)  $\$ 260$

Question 9

Solve the problem.
-For the given stock investment, find the capital gain:

Accepted Answer

A)  $\$ 23$ 
B)  $\$ 3750$ 
C)  $\$ 6750$ 
D)  $\$ 3450$ 
A)  $\$ 23$ 
B)  $\$ 3750$ 
C)  $\$ 6750$ 
D)  $\$ 3450$

Question 10

The given information applies to the day of investment in a mutual fund. Find the net asset value or number of shares
purchased as indicated.
-$$\begin{array} { l c c c } 
\hline \text { Amount } & \text { Total Fund } & \text { Total Fund } & \text { Total Shares } \
\text { Invested } & \text { Assets } & \text { Liabilities } & \text { Outstanding } \
\hline \$ 56,100 & \$ 1.52 \text { billion } & \$ 146 \text { million } & 203 \text { million } \
\hline
\end{array}$$ Find the number of shares purchased.

Accepted Answer

A) 8288 
B) 276 
C) 78,823 
D) 7492 
A) 8288 
B) 276 
C) 78,823 
D) 7492

Question 11

For the given investment, assume that there is no opportunity for reinvestment of returns. Find the monthly return,
annual return, or annual percentage return as indicated.
-$$\begin{array} { c c } 
\text { Amount } & \text { Monthly Percentage } \
\text { Invested } & \text { Return } \
\$ 807 & 0.7 \%
\end{array}$$ Find the monthly return.

Accepted Answer

A) $56.49 
B) $564.90 
C) $5.65 
D) $4.71 
A) $56.49 
B) $564.90 
C) $5.65 
D) $4.71

Question 12

For the given investment, assume that there is no opportunity for reinvestment of returns. Find the monthly return,
annual return, or annual percentage return as indicated.
-$$\begin{array} { c c } 
\text { Amount } & \text { Monthly Percentage } \
\text { Invested } & \text { Return } \
\$ 636 & 1.4 \%
\end{array}$$ Find the annual return.

Accepted Answer

A) $16.80 
B) $106.85 
C) $10,684.80 
D) $8.90 
A) $16.80 
B) $106.85 
C) $10,684.80 
D) $8.90

Question 13

Solve the problem.
-How many monthly payments of $100 are necessary to pay off a $2500 loan if the add-on interest rate is 8%?

Accepted Answer

A) 36 payments 
B) 28 payments 
C) 30 payments 
D) 40 payments 
A) 36 payments 
B) 28 payments 
C) 30 payments 
D) 40 payments

Question 14

Which of the following rules, methods, or formulas might require you to use an APR table: actuarial method, average daily balance method, banker's rule, compound interest formula, percent change formula, rule of 78s, simple interest formula, United States rule, unpaid balance method.

Accepted Answer

The answer of Which of the following rules, methods, or...

Question 15

Solve the problem.
-The average cost of a 4-year college education is projected to be $120,000 in 15 years. How much money should be invested now at 7.5%, compounded quarterly, to provide $120,000 in 15 years?

Accepted Answer

A) $39,366.24 
B) $12,914.17 
C) $90,816.95 
D) $120,000.00 
A) $39,366.24 
B) $12,914.17 
C) $90,816.95 
D) $120,000.00

Question 16

Solve the problem. Assume that simple interest is being calculated in each case. Round the answer to the nearest cent
unless otherwise indicated.
-Allan borrowed $3900 from his father to buy a car. He repaid him after 9 months with interest of 7% per year. Find the total amount he repaid.

Accepted Answer

A) $4104.75 
B) $4173.00 
C) $4082.00 
D) $204.75 
A) $4104.75 
B) $4173.00 
C) $4082.00 
D) $204.75

Question 17

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date.
-Amount Financed: $23,000 Regular Monthly Payment: $583.34
Total Number of Payments scheduled: 48
Loan repaid in full instead of making: 36th payment

Accepted Answer

A) $364.93 
B) $334.52 
C) $382.14 
D) $385.00 
A) $364.93 
B) $334.52 
C) $382.14 
D) $385.00

Question 18

Solve the problem. Use an annual percentage rate table if necessary.
-Enrique has a 60-month fixed installment loan, with a monthly payment of $44.49. The amount he borrowed was $2000. Instead of making his 24th payment, Enrique is paying the remaining balance
On the loan. How much interest will Enrique save (use the actuarial method)?

Accepted Answer

A) $254.86 
B) $313.44 
C) $259.17 
D) $262.14 
A) $254.86 
B) $313.44 
C) $259.17 
D) $262.14

Question 19

$\$ 8000$ at $6 \%$ for $2 \frac { 1 } { 2 }$ years

Accepted Answer

A)  $\$ 120.00$ 
B)  $\$ 3333.33$ 
C)  $\$ 192.00$ 
D)  $\$ 1200.00$ 
A)  $\$ 120.00$ 
B)  $\$ 3333.33$ 
C)  $\$ 192.00$ 
D)  $\$ 1200.00$

Question 20

Solve the problem using the rule of 78.
-Dallas Wright took out a 48-month fixed installment loan of $6250 to purchase a new all-terrain vehicle (ATV). He began making monthly payments of $212.50. Instead of making his 28th
Payment, Dallas decides to repay his loan in full. How much interest will Dallas save?

Accepted Answer

A) $1821.43 
B) $665.34 
C) $32.25 
D) $705.36 
A) $1821.43 
B) $665.34 
C) $32.25 
D) $705.36

Use the compound interest formula to compute the future value of the investment. -$3250 at 5.5% compounded daily for 15 years (assume 360 days per year)

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date. -Amount Financed: $2500 Regular Monthly Payment: $55.61 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 36th payment

Solve the problem. -Miguel invests his money in a savings account which gives an effective annual yield of 3.5%. The nominal rate is 3.45%. How often does compounding occur - daily, monthly, quarterly, or Semiannually?

Find the finance charge on the open-end charge account. Assume interest is calculated on the unpaid balance of the account. -Unpaid Balance $\$ 611.60$ Monthly Interest Rate $1 \frac { 1 } { 2 } \%$

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Amount Financed: $4500 Regular Monthly Payment: $184.50 Total Number of Payments scheduled: 36 Loan repaid in full instead of making: 18th payment

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Finance charge: $24,359 Total number of payments: 38 Remaining number of payments, when paid in full: 5

Find the total return earned by the given bond. -

Solve the problem. -For the given stock investment, find the capital gain:

For the given investment, assume that there is no opportunity for reinvestment of returns. Find the monthly return, annual return, or annual percentage return as indicated. - Amount Monthly Percentage Invested Return \ 807 0.7\% Find the monthly return.

For the given investment, assume that there is no opportunity for reinvestment of returns. Find the monthly return, annual return, or annual percentage return as indicated. - Amount Monthly Percentage Invested Return \ 636 1.4\% Find the annual return.

Solve the problem. -How many monthly payments of $100 are necessary to pay off a $2500 loan if the add-on interest rate is 8%?

Which of the following rules, methods, or formulas might require you to use an APR table: actuarial method, average daily balance method, banker's rule, compound interest formula, percent change formula, rule of 78s, simple interest formula, United States rule, unpaid balance method.

Solve the problem. -The average cost of a 4-year college education is projected to be $120,000 in 15 years. How much money should be invested now at 7.5%, compounded quarterly, to provide $120,000 in 15 years?

Solve the problem. Assume that simple interest is being calculated in each case. Round the answer to the nearest cent unless otherwise indicated. -Allan borrowed $3900 from his father to buy a car. He repaid him after 9 months with interest of 7% per year. Find the total amount he repaid.

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date. -Amount Financed: $23,000 Regular Monthly Payment: $583.34 Total Number of Payments scheduled: 48 Loan repaid in full instead of making: 36th payment

$\$ 8000$ at $6 \%$ for $2 \frac { 1 } { 2 }$ years

The Art of Problem Solving

The Basic Concepts of Set Theory

Introduction to Logic

Numeration Systems

Number Theory

The Real Numbers and Their Representations

The Basic Concepts of Algebra

Graphs, Functions, and Systems of Equations and Inequalities

Geometry

Counting Methods

Probability

Statistics

Trigonometry Formerly

Graph Theory

Voting and Apportionment

Filters

Exam 13: Personal Financial Management

Use the compound interest formula to compute the future value of the investment. -$3250 at 5.5% compounded daily for 15 years (assume 360 days per year)

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date. -Amount Financed: $2500 Regular Monthly Payment: $55.61 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 36th payment

Solve the problem. -Miguel invests his money in a savings account which gives an effective annual yield of 3.5%. The nominal rate is 3.45%. How often does compounding occur - daily, monthly, quarterly, or Semiannually?

Find the finance charge on the open-end charge account. Assume interest is calculated on the unpaid balance of the account. -Unpaid Balance $611.60\$ 611.60$611.60 Monthly Interest Rate 112%1 \frac { 1 } { 2 } \%121​%

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Amount Financed: $4500 Regular Monthly Payment: $184.50 Total Number of Payments scheduled: 36 Loan repaid in full instead of making: 18th payment

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity. -Finance charge: $24,359 Total number of payments: 38 Remaining number of payments, when paid in full: 5

Find the total return earned by the given bond. -

Solve the problem. -For the given stock investment, find the capital gain:

For the given investment, assume that there is no opportunity for reinvestment of returns. Find the monthly return, annual return, or annual percentage return as indicated. - Amount Monthly Percentage Invested Return \ 807 0.7\% Find the monthly return.

For the given investment, assume that there is no opportunity for reinvestment of returns. Find the monthly return, annual return, or annual percentage return as indicated. - Amount Monthly Percentage Invested Return \ 636 1.4\% Find the annual return.

Solve the problem. -How many monthly payments of $100 are necessary to pay off a $2500 loan if the add-on interest rate is 8%?

Which of the following rules, methods, or formulas might require you to use an APR table: actuarial method, average daily balance method, banker's rule, compound interest formula, percent change formula, rule of 78s, simple interest formula, United States rule, unpaid balance method.

Solve the problem. -The average cost of a 4-year college education is projected to be $120,000 in 15 years. How much money should be invested now at 7.5%, compounded quarterly, to provide $120,000 in 15 years?

Solve the problem. Assume that simple interest is being calculated in each case. Round the answer to the nearest cent unless otherwise indicated. -Allan borrowed $3900 from his father to buy a car. He repaid him after 9 months with interest of 7% per year. Find the total amount he repaid.

Use the actuarial method to find the amount of unearned interest for the loan paid in full before the due date. -Amount Financed: $23,000 Regular Monthly Payment: $583.34 Total Number of Payments scheduled: 48 Loan repaid in full instead of making: 36th payment

$8000\$ 8000$8000 at 6%6 \%6% for 2122 \frac { 1 } { 2 }221​ years

The Art of Problem Solving

The Basic Concepts of Set Theory

Introduction to Logic

Numeration Systems

Number Theory

The Real Numbers and Their Representations

The Basic Concepts of Algebra

Graphs, Functions, and Systems of Equations and Inequalities

Geometry

Counting Methods

Probability

Statistics

Trigonometry Formerly

Graph Theory

Voting and Apportionment

Filters

Find the finance charge on the open-end charge account. Assume interest is calculated on the unpaid balance of the account. -Unpaid Balance $\$ 611.60$ Monthly Interest Rate $1 \frac { 1 } { 2 } \%$

$\$ 8000$ at $6 \%$ for $2 \frac { 1 } { 2 }$ years