Question 1

If you borrow $1,400 for 6 years at 7% annual simple interest, how much must you repay at the end of the 3 years? Round your answer to the nearest dollar. ​

Accepted Answer

A)  $2,114 
B)  $7,280 
C)  $1,890 
D)  $2,086 
E)  $1,988 
A)  $2,114 
B)  $7,280 
C)  $1,890 
D)  $2,086 
E)  $1,988

Question 2

The following figure shows a graph that compares the present values of two ordinary annuities of $800 quarterly as functions of the number of quarters. One annuity is at an annual rate of 6% compounded quarterly, and the other is at an annual rate of 9% compounded quarterly. Use the graph below to estimate the difference between the present values of these annuities for 25 years (100 quarters). ​
​   ​

Accepted Answer

A)  $36,000 
B)  $4,800 
C)  $30,000 
D)  $125 
E)  $9,586 
A)  $36,000 
B)  $4,800 
C)  $30,000 
D)  $125 
E)  $9,586

Question 3

Find the present value of an annuity of $1,800, at the end of each quarter for 8 years after being deferred for 6 years, if the money is worth an annual rate of 8.8% compounded quarterly. Round your answer to the nearest cent. ​

Accepted Answer

A)  $31,608.45 
B)  $27,739.45 
C)  $19,744.32 
D)  $24,344.03 
E)  $14,269.91 
A)  $31,608.45 
B)  $27,739.45 
C)  $19,744.32 
D)  $24,344.03 
E)  $14,269.91

Question 4

Suppose Emily Yu deposited $1,400 in an account that earned simple interest at an annual rate of 10% and left it there for 3 years. At the end of the 3 years, Emily deposited the entire amount from that account into a new account that earned 10% compounded quarterly. She left the money in this account for 8 years. How much did she have after the 11 years? Round your answer to the nearest cent. ​

Accepted Answer

A)  $4,010.84 
B)  $5,197.15 
C)  $3,429.86 
D)  $3,088.77 
E)  $8,672.19 
A)  $4,010.84 
B)  $5,197.15 
C)  $3,429.86 
D)  $3,088.77 
E)  $8,672.19

Question 5

An annuity consists of payments of $600 at the beginning of each month with an annual rate of 5.7 per cent. Is this an ordinary annuity or an annuity due? ​

Accepted Answer

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

Question 6

Suppose that in order to buy a Treasury bill (T-bill) that matures to $10,000 in 10 months, you must pay $9,750. What rate does this earn? Round your answer to one decimal place. ​

Accepted Answer

A)  4.3% 
B)  1.8% 
C)  3.7% 
D)  2.5% 
E)  3.1% 
A)  4.3% 
B)  1.8% 
C)  3.7% 
D)  2.5% 
E)  3.1%

Question 7

What interest will be earned if $5,800 is invested for 2 years at an annual rate of 9% compounded monthly? Round your answer to the nearest cent. ​

Accepted Answer

A)  $7,586.35 
B)  $6,635.80 
C)  $7,191.44 
D)  $6,939.20 
E)  $45,884.28 
A)  $7,586.35 
B)  $6,635.80 
C)  $7,191.44 
D)  $6,939.20 
E)  $45,884.28

Question 8

Time-share sales provide an opportunity for vacationers to own a resort condo for 1 week (or more) each year forever. The owners may use their week at their own condo or trade the week and vacation elsewhere. Timeshare vacation sales usually require payment in full or financing through the time-share company, and interest rates are usually in the 13% to 18% range. Suppose the cost to buy a 1-week time share in a 3-bedroom condo is $24,300. Also suppose a 10% down payment is required, with the balance financed for 15 years at an annual rate of 16.4%, compounded monthly. Determine the total amount paid for the condo. Round your answer to the nearest cent. ​

Accepted Answer

A)  $62,968.45 
B)  $62,389.88 
C)  $61,955.95 
D)  $61,618.45 
E)  $61,348.45 
A)  $62,968.45 
B)  $62,389.88 
C)  $61,955.95 
D)  $61,618.45 
E)  $61,348.45

Question 9

Find the payment size and the total interest paid over the life of the loan of $350,000 at 10% under the following condition. Payments are monthly, and the rate is 10%, compounded monthly for 25 years. Round your answers to the nearest cent. ​

Accepted Answer

A)  Payment size is $3,335.60 and the total interest paid is $604,135.00. 
B)  Payment size is $3,052.53 and the total interest paid is $1,304,135.00. 
C)  Payment size is $3,335.60 and the total interest paid is $1,304,135.00. 
D)  Payment size is $3,180.45 and the total interest paid is $604,135.00. 
E)  Payment size is $3,052.53 and the total interest paid is $445,112.50. 
A)  Payment size is $3,335.60 and the total interest paid is $604,135.00. 
B)  Payment size is $3,052.53 and the total interest paid is $1,304,135.00. 
C)  Payment size is $3,335.60 and the total interest paid is $1,304,135.00. 
D)  Payment size is $3,180.45 and the total interest paid is $604,135.00. 
E)  Payment size is $3,052.53 and the total interest paid is $445,112.50.

Question 10

A year-end bonus of $15,000 will generate how much money at the beginning of each month for the next year, if it can be invested at 6.48%, compounded monthly? Round your answer to the nearest cent. ​

Accepted Answer

A)  $1,536.61 
B)  $1,287.36 
C)  $7,520.20 
D)  $2,533.78 
E)  $664.47 
A)  $1,536.61 
B)  $1,287.36 
C)  $7,520.20 
D)  $2,533.78 
E)  $664.47

Question 11

Find the next three terms of the geometric sequence. ​
3, 9, 27,...
​

Accepted Answer

A)  4, 12, 36,... 
B)  81, 243, 729,... 
C)  108, 324, 972,... 
D)  27, 81, 243,... 
E)  108, 243, 729,... 
A)  4, 12, 36,... 
B)  81, 243, 729,... 
C)  108, 324, 972,... 
D)  27, 81, 243,... 
E)  108, 243, 729,...

Question 12

If $91,000 is invested in an annuity that earns an annual rate of 7.5%, compounded quarterly, what payments will it provide at the end of each quarter for the next 8.5 years? Round your answer to the nearest cent. ​

Accepted Answer

A)  $3,125.42 
B)  $3,643.82 
C)  $2,786.85 
D)  $2,550.88 
E)  $2,378.88 
A)  $3,125.42 
B)  $3,643.82 
C)  $2,786.85 
D)  $2,550.88 
E)  $2,378.88

Question 13

Andre De Quadros bought a $2,000, 9-month certificate of deposit (CD) that would earn 8.5% annual simple interest. What is the value of the CD when it matures? Round your answer to to the nearest cent. ​

Accepted Answer

A)  $2,042.50 
B)  $2,085.00 
C)  $2,170.00 
D)  $2,113.33 
E)  $2,127.50 
A)  $2,042.50 
B)  $2,085.00 
C)  $2,170.00 
D)  $2,113.33 
E)  $2,127.50

Question 14

A house is rented for $3,700 per quarter, with each quarter's rent payable in advance. If money is worth 6%, compounded quarterly, and the rent is deposited in an account, what is the future value of the rent for two years? Round your answer to the nearest cent. ​

Accepted Answer

A)  $20,437.99 
B)  $146,482.53 
C)  $65,803.29 
D)  $42,342.65 
E)  $31,201.50 
A)  $20,437.99 
B)  $146,482.53 
C)  $65,803.29 
D)  $42,342.65 
E)  $31,201.50

Question 15

As a result of a November 2004 court settlement, Goldman Gadgets agreed to pay $13.8 million to Fender Motor Company, with $6 million of it going to a Fender charitable trust. If the trust invested this money at an annual rate of 8%, compounded annually, how much could be awarded to worthwhile organizations at the end of each year for the next 29 years? Round your answer to the nearest cent. ​

Accepted Answer

A)  $590,779.29 
B)  $480,063.70 
C)  $480,594.17 
D)  $485,593.65 
E)  $537,711.21 
A)  $590,779.29 
B)  $480,063.70 
C)  $480,594.17 
D)  $485,593.65 
E)  $537,711.21

Question 16

Which of the following expresses the sum of the first 27 terms of the geometric sequence 9, -6, 4....? ​

Accepted Answer

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

Question 17

What is the annual percentage yield (or effective annual rate) for a nominal rate of 12% compounded continuously? Round your answer to two decimal places. ​

Accepted Answer

A)  16.18% 
B)  12.75% 
C)  11.53% 
D)  14.26% 
E)  18.70% 
A)  16.18% 
B)  12.75% 
C)  11.53% 
D)  14.26% 
E)  18.70%

Question 18

What does the number 0.004 represent in the given equation:   ? ​

Accepted Answer

A)  number of periods 
B)  future value 
C)  principal value 
D)  periodic rate 
E)  none of these choices 
A)  number of periods 
B)  future value 
C)  principal value 
D)  periodic rate 
E)  none of these choices

Question 19

State whether the problem relates to an ordinary annuity or an annuity due. Mr. Gordon plans to invest $500 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 $60,000? ​

Accepted Answer

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

Question 20

Find An:   . Round your answer to the nearest dollar. ​

Accepted Answer

A)  $86,002 
B)  $141,632 
C)  $99,394 
D)  $110,638 
E)  $108,647 
A)  $86,002 
B)  $141,632 
C)  $99,394 
D)  $110,638 
E)  $108,647

If you borrow $1,400 for 6 years at 7% annual simple interest, how much must you repay at the end of the 3 years? Round your answer to the nearest dollar.

Find the present value of an annuity of $1,800, at the end of each quarter for 8 years after being deferred for 6 years, if the money is worth an annual rate of 8.8% compounded quarterly. Round your answer to the nearest cent.

An annuity consists of payments of $600 at the beginning of each month with an annual rate of 5.7 per cent. Is this an ordinary annuity or an annuity due?

Suppose that in order to buy a Treasury bill (T-bill) that matures to $10,000 in 10 months, you must pay $9,750. What rate does this earn? Round your answer to one decimal place.

What interest will be earned if $5,800 is invested for 2 years at an annual rate of 9% compounded monthly? Round your answer to the nearest cent.

Find the payment size and the total interest paid over the life of the loan of $350,000 at 10% under the following condition. Payments are monthly, and the rate is 10%, compounded monthly for 25 years. Round your answers to the nearest cent.

A year-end bonus of $15,000 will generate how much money at the beginning of each month for the next year, if it can be invested at 6.48%, compounded monthly? Round your answer to the nearest cent.

Find the next three terms of the geometric sequence. 3, 9, 27,...

If $91,000 is invested in an annuity that earns an annual rate of 7.5%, compounded quarterly, what payments will it provide at the end of each quarter for the next 8.5 years? Round your answer to the nearest cent.

Andre De Quadros bought a $2,000, 9-month certificate of deposit (CD) that would earn 8.5% annual simple interest. What is the value of the CD when it matures? Round your answer to to the nearest cent.

A house is rented for $3,700 per quarter, with each quarter's rent payable in advance. If money is worth 6%, compounded quarterly, and the rent is deposited in an account, what is the future value of the rent for two years? Round your answer to the nearest cent.

Which of the following expresses the sum of the first 27 terms of the geometric sequence 9, -6, 4....?

What is the annual percentage yield (or effective annual rate) for a nominal rate of 12% compounded continuously? Round your answer to two decimal places.

What does the number 0.004 represent in the given equation: ?

State whether the problem relates to an ordinary annuity or an annuity due. Mr. Gordon plans to invest $500 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 $60,000?

Find A_n: . Round your answer to the nearest dollar.

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

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Exam 6: Mathematics of Finance

If you borrow $1,400 for 6 years at 7% annual simple interest, how much must you repay at the end of the 3 years? Round your answer to the nearest dollar. ​

Find the present value of an annuity of $1,800, at the end of each quarter for 8 years after being deferred for 6 years, if the money is worth an annual rate of 8.8% compounded quarterly. Round your answer to the nearest cent. ​

An annuity consists of payments of $600 at the beginning of each month with an annual rate of 5.7 per cent. Is this an ordinary annuity or an annuity due? ​

Suppose that in order to buy a Treasury bill (T-bill) that matures to $10,000 in 10 months, you must pay $9,750. What rate does this earn? Round your answer to one decimal place. ​

What interest will be earned if $5,800 is invested for 2 years at an annual rate of 9% compounded monthly? Round your answer to the nearest cent. ​

Find the payment size and the total interest paid over the life of the loan of $350,000 at 10% under the following condition. Payments are monthly, and the rate is 10%, compounded monthly for 25 years. Round your answers to the nearest cent. ​

A year-end bonus of $15,000 will generate how much money at the beginning of each month for the next year, if it can be invested at 6.48%, compounded monthly? Round your answer to the nearest cent. ​

Find the next three terms of the geometric sequence. ​ 3, 9, 27,... ​

If $91,000 is invested in an annuity that earns an annual rate of 7.5%, compounded quarterly, what payments will it provide at the end of each quarter for the next 8.5 years? Round your answer to the nearest cent. ​

Andre De Quadros bought a $2,000, 9-month certificate of deposit (CD) that would earn 8.5% annual simple interest. What is the value of the CD when it matures? Round your answer to to the nearest cent. ​

A house is rented for $3,700 per quarter, with each quarter's rent payable in advance. If money is worth 6%, compounded quarterly, and the rent is deposited in an account, what is the future value of the rent for two years? Round your answer to the nearest cent. ​

Which of the following expresses the sum of the first 27 terms of the geometric sequence 9, -6, 4....? ​

What is the annual percentage yield (or effective annual rate) for a nominal rate of 12% compounded continuously? Round your answer to two decimal places. ​

What does the number 0.004 represent in the given equation: ? ​

State whether the problem relates to an ordinary annuity or an annuity due. Mr. Gordon plans to invest $500 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 $60,000? ​

Find An: . Round your answer to the nearest dollar. ​

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

If you borrow $1,400 for 6 years at 7% annual simple interest, how much must you repay at the end of the 3 years? Round your answer to the nearest dollar.

Find the present value of an annuity of $1,800, at the end of each quarter for 8 years after being deferred for 6 years, if the money is worth an annual rate of 8.8% compounded quarterly. Round your answer to the nearest cent.

An annuity consists of payments of $600 at the beginning of each month with an annual rate of 5.7 per cent. Is this an ordinary annuity or an annuity due?

Suppose that in order to buy a Treasury bill (T-bill) that matures to $10,000 in 10 months, you must pay $9,750. What rate does this earn? Round your answer to one decimal place.

What interest will be earned if $5,800 is invested for 2 years at an annual rate of 9% compounded monthly? Round your answer to the nearest cent.

Find the payment size and the total interest paid over the life of the loan of $350,000 at 10% under the following condition. Payments are monthly, and the rate is 10%, compounded monthly for 25 years. Round your answers to the nearest cent.

A year-end bonus of $15,000 will generate how much money at the beginning of each month for the next year, if it can be invested at 6.48%, compounded monthly? Round your answer to the nearest cent.

Find the next three terms of the geometric sequence. 3, 9, 27,...

If $91,000 is invested in an annuity that earns an annual rate of 7.5%, compounded quarterly, what payments will it provide at the end of each quarter for the next 8.5 years? Round your answer to the nearest cent.

Andre De Quadros bought a $2,000, 9-month certificate of deposit (CD) that would earn 8.5% annual simple interest. What is the value of the CD when it matures? Round your answer to to the nearest cent.

A house is rented for $3,700 per quarter, with each quarter's rent payable in advance. If money is worth 6%, compounded quarterly, and the rent is deposited in an account, what is the future value of the rent for two years? Round your answer to the nearest cent.

Which of the following expresses the sum of the first 27 terms of the geometric sequence 9, -6, 4....?

What is the annual percentage yield (or effective annual rate) for a nominal rate of 12% compounded continuously? Round your answer to two decimal places.

What does the number 0.004 represent in the given equation: ?

State whether the problem relates to an ordinary annuity or an annuity due. Mr. Gordon plans to invest $500 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 $60,000?

Find A_n: . Round your answer to the nearest dollar.