Exam 4: Managing Money

Assume you have a balance of $3200 on your credit card that you want to pay off. Calculate your monthly payment andtotal payment under the given conditions. Assume you make no additional charges to the card. -The credit card APR is 19% and you want to pay off the balance in 2 years.

Find the annual percentage yield (APY). -A bank offers an APR of 3.25% compounded semiannually.

For the given principal, interest rate, and time period, determine the amount of interest that would be earned in anaccount paying simple interest. Also determine the amount of interest that would be earned in an account payingcompound interest with interest compounded annually. Determine how much more interest would be earned in theaccount paying compound interest. Round to the nearest cent. -Principal: $4021 Rate: 3% Years: 18

Calculate the amount of interest you'll have at the end of the indicated period. -You invest $10,000 in an account that pays simple interest of 2% for 14 years.

Decide whether the statement makes sense. Explain your reasoning. -Sheila is in the 25% tax bracket, so a $500 charitable contribution will reduce her total tax bill by $0.25 \times \$ 500 = \$ 125$

Solve the problem. -Suppose a government decided to pay off its $9 trillion debt with a one-time charge distributed equally among all workers. Assuming the country's total work force is 141 million people, how Much would each worker be charged?

Solve the equation for the unknown. - $( t / 2 ) ^ { 2 } = 16$

Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period. -$5150 deposit at an APR of 4% with semiannual compounding for 6 years

Solve the problem. -Suppose you start saving today for a $20,000 down payment that you plan to make on a house in 10 years. Assume that you make no deposits into the account after your initial deposit. The account Has quarterly compounding and an APR of 3%. How much would you need to deposit now to Reach your $20,000 goal in 10 years?

Solve the problem. -In a recent year, the total receipts for the US federal government were $2154 billion. The total outlays were $2472 billion. The deficit was $318 billion. What would the deficit have been, if there Had been a 2% increase in total receipts?

Decide whether the statement makes sense. Explain your reasoning. -In 2013, the United States publicly held debt was $17 trillion. Use the loan payment formula to determine the annual payments needed to pay this debt off in 10 years. Assume an annual interest Rate of 3%.

Provide an appropriate response. -A savings plan in which payments are made at the end of each month is called a(n)_____?

Use the compound interest formula to determine the accumulated balance after the stated period. Assume that interest iscompounded annually. -$2000 is invested at an APR of 1.8% for 2 years.

Solve the problem. - Suppose you invest $8000 in this fund today. How many shares will you buy? Round to three decimal places.

Write the word or phrase that best completes each statement or answers the question.Decide whether the statement makes sense. Explain your reasoning. -Raul is planning to invest his money for one year only. He chose an account paying simple interest at 6% per year which was clearly a better deal than an account paying a 5.6% APR with interest compounded annually.

Solve. -Genevieve is in the 28% tax bracket. George is in the 35% tax bracket. They each itemize their deductions and they each donate $7402 to charity. Compute their true costs for charitable Donations.

Assume you have a balance of $3200 on your credit card that you want to pay off. Calculate your monthly payment andtotal payment under the given conditions. Assume you make no additional charges to the card. -The credit card APR is 18% and you want to pay off the balance in 3 years.

Solve the equation for the unknown quantity. - $8 x - 10 = 3 x - 45$

Calculate the balance under the given assumptions. -Find the savings plan balance after 4 years with an APR of 2% and monthly payments of $593.

Solve the problem. -Budget Summary for the Wonderful Widget Company (all amounts in thousands of dollars) Total Receipts 2001 2002 2003 2004 Outlays \ 854 \ 908 \ 950 \ 990 Operating 525 550 600 600 Employee Benefits 200 220 250 250 Security 275 300 320 300 Interest on Debt Total Outlays 1000 1082 1196 1197 Surplus/Deficit -146 -174 -246 -207 Debt (accumulated) Assume that , for 2005, total receipts are $1,025,209, operating expenses are $542,589, employee benefits are $199,116, security costs are$131,470, and interest on debt is $63,000. Calculate the Outlays for 2005.