Question 1

What does 050 represent in the following equation? ​   ​

Accepted Answer

A)  present value of the annuity 
B)  total number of payments(periods) 
C)  interest rate per period 
D)  future value of the annuity 
E)  interest rate per year 
A)  present value of the annuity 
B)  total number of payments(periods) 
C)  interest rate per period 
D)  future value of the annuity 
E)  interest rate per year

Question 2

A grateful alumnus wishes to provide a scholarship of $2,600 per year for 5 years to his alma mater, with the first scholarship awarded on his 55th birthday. If the money is worth an annual rate of 6.4%, compounded annually, how much money must he donate on his 45th birthday? Round your answer to the nearest cent. ​

Accepted Answer

A)  $1,583.43 
B)  $3,546.82 
C)  $8,994.22 
D)  $9,569.85 
E)  $6,198.89 
A)  $1,583.43 
B)  $3,546.82 
C)  $8,994.22 
D)  $9,569.85 
E)  $6,198.89

Question 3

Given 5 and 30 year loans with the same interest rate, the 30 year loan results in more of each payment being directed toward principal.

Accepted Answer

A) True 
 B)False

Question 4

$3,000 is invested for 15 months at an annual simple interest rate of 12%. How much interest will be earned? Round your answer to the nearest dollar. ​

Accepted Answer

A)  $4,503 
B)  $5,400 
C)  $450 
D)  $397 
E)  $543 
A)  $4,503 
B)  $5,400 
C)  $450 
D)  $397 
E)  $543

Question 5

Find S:   . Round your answer to the nearest cent. ​

Accepted Answer

A)  $7,394.15 
B)  $1,173.17 
C)  $4,730.70 
D)  $3,000.00 
E)  $1,885.04 
A)  $7,394.15 
B)  $1,173.17 
C)  $4,730.70 
D)  $3,000.00 
E)  $1,885.04

Question 6

Suppose that Ian Greitzer deposits his $14,500 bonus in an account that earns an annual rate of 9%, compounded quarterly, and makes additional deposits of $400 at the end of each quarter for the next 22.5 years, until he retires. How much was deposited? Round your answer to the nearest cent. ​

Accepted Answer

A)  $948,710.63 
B)  $25,622.85 
C)  $50,500.00 
D)  $313,872,654.67 
E)  $22,842.14 
A)  $948,710.63 
B)  $25,622.85 
C)  $50,500.00 
D)  $313,872,654.67 
E)  $22,842.14

Question 7

A couple has determined that they need $400,000 to establish an annuity when they retire in 20 years. How much money should they deposit at the end of each month in an investment plan that pays an annual rate of 8%, compounded monthly, so they will have the $400,000 in 20 years? Round your answer to the nearest cent. ​

Accepted Answer

A)  $2,186.44 
B)  $679.09 
C)  $960.30 
D)  $18,762.78 
E)  $8,758.96 
A)  $2,186.44 
B)  $679.09 
C)  $960.30 
D)  $18,762.78 
E)  $8,758.96

Question 8

A retiree inherits $90,000 and invests it at an annual rate of 8%, compounded monthly, in an annuity that provides an amount at the end of each month for the next 20 years. Find the monthly amount. Round your answer to the nearest cent. ​

Accepted Answer

A)  $3,262.12 
B)  $7,026.10 
C)  $2,007.46 
D)  $752.80 
E)  $627.33 
A)  $3,262.12 
B)  $7,026.10 
C)  $2,007.46 
D)  $752.80 
E)  $627.33

Question 9

Mr. Alphin plans to invest $350 at the end of each month in an account that pays an annual rate of 9%, compounded monthly. After how many months will the account be worth $50,000? Round your answer to two decimal places. ​

Accepted Answer

A)  192.52 months 
B)  57.41 months 
C)  222.83 months 
D)  153.26 months 
E)  97.46 months 
A)  192.52 months 
B)  57.41 months 
C)  222.83 months 
D)  153.26 months 
E)  97.46 months

Question 10

A small business borrowed $70,000 for 12 years at an annual rate of 12%, compounded semiannually, in order to update some equipment. Find the payoff amount just after the company makes the 12th semiannual payment of $5,577.53. Round your answer to the nearest cent. ​

Accepted Answer

A)  $90,140.85 
B)  $87,288.49 
C)  $81,548.99 
D)  $70,000.00 
E)  $46,761.14 
A)  $90,140.85 
B)  $87,288.49 
C)  $81,548.99 
D)  $70,000.00 
E)  $46,761.14

Question 11

If $11,000 had been invested in the Fictious Fund on June 30, 1991, then on June 30, 2000 the investment would have been worth $34,575.25. What interest rate compounded annually would this investment have earned? Round your answer to two decimal places. ​

Accepted Answer

A)  27.14% 
B)  13.57% 
C)  11.27% 
D)  15.33% 
E)  6.79% 
A)  27.14% 
B)  13.57% 
C)  11.27% 
D)  15.33% 
E)  6.79%

Question 12

Emily Rideout deposits $2,000 at the end of each of the 5 years she qualifies for an IRA. If she leaves the money that has accumulated in the IRA account for 25 additional years, how much is in her account at the end of the 30-year period? Assume an annual interest rate of 8.1%, compounded annually. Round your answer to the nearest cent. ​

Accepted Answer

A)  $17,354.45 
B)  $82,399.55 
C)  $458,820.59 
D)  $293,915.51 
E)  $12,708.91 
A)  $17,354.45 
B)  $82,399.55 
C)  $458,820.59 
D)  $293,915.51 
E)  $12,708.91

Question 13

If you lend $3,500 to a friend for 19 months at 8% annual simple interest, find the future value of loan. Round your answer to the nearest cent. ​

Accepted Answer

A)  $4,386.67 
B)  $8,820.00 
C)  $3,998.75 
D)  $3,943.33 
E)  $3,887.92 
A)  $4,386.67 
B)  $8,820.00 
C)  $3,998.75 
D)  $3,943.33 
E)  $3,887.92

Question 14

How long does it take for an account containing $5,500 to be worth $13,600 if the money is invested at 12% compounded monthly? Round your answer to the one decimal place. ​

Accepted Answer

A)  8.8 years 
B)  6.3 years 
C)  7.6 years 
D)  8.2 years 
E)  9.5 years 
A)  8.8 years 
B)  6.3 years 
C)  7.6 years 
D)  8.2 years 
E)  9.5 years

Question 15

What does 040 represent in the following equation? ​   ​

Accepted Answer

A)  future value of the annuity 
B)  total number of payments(periods) 
C)  interest rate per period 
D)  interest rate per year 
E)  none of these choices 
A)  future value of the annuity 
B)  total number of payments(periods) 
C)  interest rate per period 
D)  interest rate per year 
E)  none of these choices

Question 16

Suppose that Tom Martin deposits his $11,500 bonus in an account that earns an annual rate of 7%, compounded quarterly, and makes additional deposits of $600 at the end of each quarter for the next 25.5 years, until he retires. To supplement his retirement, Tom wants to make withdrawals at the end of each quarter for the next 13 years (at which time the account balance will be $0). What is the amount of each withdrawal? Round your answer to the nearest cent. ​

Accepted Answer

A)  $4,722.29 
B)  $5,167.74 
C)  $6,902.22 
D)  $4,476.51 
E)  $4,138.26 
A)  $4,722.29 
B)  $5,167.74 
C)  $6,902.22 
D)  $4,476.51 
E)  $4,138.26

Question 17

A pump removes   of the water in a container with every stroke. How much water remains in the container after 3 strokes if it originally contained 36 cm3? ​

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 18

An investor owns several apartment buildings. The taxes on these buildings total $2,000 per year and are due before April 1. The late fee is 0.5% per month up to 6 months, at which time the buildings are seized by the authorities and sold for back taxes. If the investor has $2,000 available on March 31, how much money will he save by investing the money at 9% and paying the taxes and the penalty on September 30 instead of paying the taxes at that time? Round your answer to the nearest cent. ​

Accepted Answer

A)  $120.00 
B)  $84.00 
C)  $30.00 
D)  $75.00 
E)  $48.00 
A)  $120.00 
B)  $84.00 
C)  $30.00 
D)  $75.00 
E)  $48.00

Question 19

What is the annual percentage yield (or effective annual rate) for a nominal rate of 8% compounded quarterly? Round your answer to two decimal places. ​

Accepted Answer

A)  11.1% 
B)  6.56% 
C)  8.54% 
D)  8.24% 
E)  9.64% 
A)  11.1% 
B)  6.56% 
C)  8.54% 
D)  8.24% 
E)  9.64%

Question 20

State whether the problem relates to an ordinary annuity or an annuity due. A couple has determined that they need $400,000 to establish an annuity when they retire in 25 years. How much money should they deposit at the end of each month in an investment plan that pays an annual rate of 8%, compounded monthly, so they will have the $400,000 in 25 years? ​

Accepted Answer

A)  ordinary annuity 
B)  annuity due 
A)  ordinary annuity 
B)  annuity due

What does 050 represent in the following equation?

Given 5 and 30 year loans with the same interest rate, the 30 year loan results in more of each payment being directed toward principal.

$3,000 is invested for 15 months at an annual simple interest rate of 12%. How much interest will be earned? Round your answer to the nearest dollar.

Find S: . Round your answer to the nearest cent.

Suppose that Ian Greitzer deposits his $14,500 bonus in an account that earns an annual rate of 9%, compounded quarterly, and makes additional deposits of $400 at the end of each quarter for the next 22.5 years, until he retires. How much was deposited? Round your answer to the nearest cent.

A retiree inherits $90,000 and invests it at an annual rate of 8%, compounded monthly, in an annuity that provides an amount at the end of each month for the next 20 years. Find the monthly amount. Round your answer to the nearest cent.

Mr. Alphin plans to invest $350 at the end of each month in an account that pays an annual rate of 9%, compounded monthly. After how many months will the account be worth $50,000? Round your answer to two decimal places.

A small business borrowed $70,000 for 12 years at an annual rate of 12%, compounded semiannually, in order to update some equipment. Find the payoff amount just after the company makes the 12th semiannual payment of $5,577.53. Round your answer to the nearest cent.

If $11,000 had been invested in the Fictious Fund on June 30, 1991, then on June 30, 2000 the investment would have been worth $34,575.25. What interest rate compounded annually would this investment have earned? Round your answer to two decimal places.

If you lend $3,500 to a friend for 19 months at 8% annual simple interest, find the future value of loan. Round your answer to the nearest cent.

How long does it take for an account containing $5,500 to be worth $13,600 if the money is invested at 12% compounded monthly? Round your answer to the one decimal place.

What does 040 represent in the following equation?

A pump removes of the water in a container with every stroke. How much water remains in the container after 3 strokes if it originally contained 36 cm³?

What is the annual percentage yield (or effective annual rate) for a nominal rate of 8% compounded quarterly? Round your answer to two decimal places.

Linear Equations and Functions

Quadratic and Other Special Functions

Matrices

Inequalities and Linear Programming

Exponential and Logarithmic Functions

Introduction to Probability

Further Topics in Probability and Data Description

Derivatives

Derivatives

Derivatives Continued

Indefinite Integrals

Definite Integrals - Techniques

A: Definite Integrals - Techniques

Functions of Two or More Variables

Algebraic Concepts 2

Algebraic Concepts 3

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Algebraic Concepts 5

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Exam 6: Mathematics of Finance

What does 050 represent in the following equation? ​ ​

Given 5 and 30 year loans with the same interest rate, the 30 year loan results in more of each payment being directed toward principal.

$3,000 is invested for 15 months at an annual simple interest rate of 12%. How much interest will be earned? Round your answer to the nearest dollar. ​

Find S: . Round your answer to the nearest cent. ​

Suppose that Ian Greitzer deposits his $14,500 bonus in an account that earns an annual rate of 9%, compounded quarterly, and makes additional deposits of $400 at the end of each quarter for the next 22.5 years, until he retires. How much was deposited? Round your answer to the nearest cent. ​

A retiree inherits $90,000 and invests it at an annual rate of 8%, compounded monthly, in an annuity that provides an amount at the end of each month for the next 20 years. Find the monthly amount. Round your answer to the nearest cent. ​

Mr. Alphin plans to invest $350 at the end of each month in an account that pays an annual rate of 9%, compounded monthly. After how many months will the account be worth $50,000? Round your answer to two decimal places. ​

A small business borrowed $70,000 for 12 years at an annual rate of 12%, compounded semiannually, in order to update some equipment. Find the payoff amount just after the company makes the 12th semiannual payment of $5,577.53. Round your answer to the nearest cent. ​

If $11,000 had been invested in the Fictious Fund on June 30, 1991, then on June 30, 2000 the investment would have been worth $34,575.25. What interest rate compounded annually would this investment have earned? Round your answer to two decimal places. ​

If you lend $3,500 to a friend for 19 months at 8% annual simple interest, find the future value of loan. Round your answer to the nearest cent. ​

How long does it take for an account containing $5,500 to be worth $13,600 if the money is invested at 12% compounded monthly? Round your answer to the one decimal place. ​

What does 040 represent in the following equation? ​ ​

A pump removes of the water in a container with every stroke. How much water remains in the container after 3 strokes if it originally contained 36 cm3? ​

What is the annual percentage yield (or effective annual rate) for a nominal rate of 8% compounded quarterly? Round your answer to two decimal places. ​

Linear Equations and Functions

Quadratic and Other Special Functions

Matrices

Inequalities and Linear Programming

Exponential and Logarithmic Functions

Introduction to Probability

Further Topics in Probability and Data Description

Derivatives

Derivatives

Derivatives Continued

Indefinite Integrals

Definite Integrals - Techniques

A: Definite Integrals - Techniques

Functions of Two or More Variables

Algebraic Concepts 2

Algebraic Concepts 3

Algebraic Concepts 4

Algebraic Concepts 5

Filters

What does 050 represent in the following equation?

$3,000 is invested for 15 months at an annual simple interest rate of 12%. How much interest will be earned? Round your answer to the nearest dollar.

Find S: . Round your answer to the nearest cent.

Suppose that Ian Greitzer deposits his $14,500 bonus in an account that earns an annual rate of 9%, compounded quarterly, and makes additional deposits of $400 at the end of each quarter for the next 22.5 years, until he retires. How much was deposited? Round your answer to the nearest cent.

A retiree inherits $90,000 and invests it at an annual rate of 8%, compounded monthly, in an annuity that provides an amount at the end of each month for the next 20 years. Find the monthly amount. Round your answer to the nearest cent.

Mr. Alphin plans to invest $350 at the end of each month in an account that pays an annual rate of 9%, compounded monthly. After how many months will the account be worth $50,000? Round your answer to two decimal places.

A small business borrowed $70,000 for 12 years at an annual rate of 12%, compounded semiannually, in order to update some equipment. Find the payoff amount just after the company makes the 12th semiannual payment of $5,577.53. Round your answer to the nearest cent.

If $11,000 had been invested in the Fictious Fund on June 30, 1991, then on June 30, 2000 the investment would have been worth $34,575.25. What interest rate compounded annually would this investment have earned? Round your answer to two decimal places.

If you lend $3,500 to a friend for 19 months at 8% annual simple interest, find the future value of loan. Round your answer to the nearest cent.

How long does it take for an account containing $5,500 to be worth $13,600 if the money is invested at 12% compounded monthly? Round your answer to the one decimal place.

What does 040 represent in the following equation?

A pump removes of the water in a container with every stroke. How much water remains in the container after 3 strokes if it originally contained 36 cm³?

What is the annual percentage yield (or effective annual rate) for a nominal rate of 8% compounded quarterly? Round your answer to two decimal places.