Question 1

A credit card bill shows a balance due of $750 with a minimum payment of $15 and a monthly interest rate of 1.62%. What is the APR?

Accepted Answer

A)  17.28% 
B)  18.72% 
C)  19.44% 
D)  21.26% 
A)  17.28% 
B)  18.72% 
C)  19.44% 
D)  21.26% C

Question 2

David takes out a conventional loan to purchase a car. The interest rate is 4.8% compounded quarterly and David has four years to repay the $12,000 he borrowed. What are David's quarterly payments?

Accepted Answer

$828.78

Question 3

You invest $325 each quarter into an annuity earning 9% compounded quarterly. How much do you have at the end of 10 years?

Accepted Answer

$20,730.51

Question 4

How much would you have to invest each month in an annuity earning 6.5% monthly to earn $30,000 at the end of 15 years?

Accepted Answer

A)  $84.77 
B)  $98.83 
C)  $146.93 
D)  $152.15 
A)  $84.77 
B)  $98.83 
C)  $146.93 
D)  $152.15

Question 5

If you buy a 20-year annuity with an up-front payment of $50,000, and an interest rate of 6% compounded monthly, how much monthly income will you receive?

Accepted Answer

The answer of If you buy a 20-year annuity with...

Question 6

You have established an annuity plan that will accumulate to $50,000 in 10 years by investing $100 a month. If you instead invest $200 a month, what would your annuity accumulate?

Accepted Answer

A)  more than $160,000 
B)  $150,000 
C)  $100,000 
D)  less than $90,000 
A)  more than $160,000 
B)  $150,000 
C)  $100,000 
D)  less than $90,000

Question 7

Your rich Uncle Ralph is willing to loan you $5000 for 3 1/2 years and asks that you repay your loan with quarterly compounding interest at the rate of 8% per year. How much will you repay after 3 1/2 years?

Accepted Answer

A)  $6545.66 
B)  $5358.84 
C)  $6442.56 
D)  $6597.39 
A)  $6545.66 
B)  $5358.84 
C)  $6442.56 
D)  $6597.39

Question 8

Which of these savings rates is most favorable?

Accepted Answer

A)  5% compounded annually 
B)  5% compounded semi-annually 
C)  5% compounded quarterly 
D)  5% compounded monthly 
A)  5% compounded annually 
B)  5% compounded semi-annually 
C)  5% compounded quarterly 
D)  5% compounded monthly

Question 9

Ellie takes out a conventional loan to purchase a car. The interest rate is 7.5% compounded monthly and Ellie has four years to repay the $12,000 she borrowed. What are Ellie's monthly payments?

Accepted Answer

A)  $95.46 
B)  $139.33 
C)  $169.53 
D)  $290.15 
A)  $95.46 
B)  $139.33 
C)  $169.53 
D)  $290.15

Question 10

Find the future value of an annuity with monthly deposits of $150, made over a period of four years, with 5.2% interest compounded monthly.

Accepted Answer

A)  $5777.18 
B)  $7984.39 
C)  $7706.18 
D)  $8254.28 
A)  $5777.18 
B)  $7984.39 
C)  $7706.18 
D)  $8254.28

Question 11

Looking far ahead, your grandmother makes a one-time payment of $200,000 to obtain a monthly income for 20 years. Assuming a steady interest rate of 4% compounded monthly, what monthly payments will she receive?

Accepted Answer

A)  $833.33 
B)  $1000.83 
C)  $1117.96 
D)  $1211.96 
A)  $833.33 
B)  $1000.83 
C)  $1117.96 
D)  $1211.96

Question 12

Find the future value of an annuity with weekly deposits of $12, made over a period of five years, with 3.8% interest compounded weekly.

Accepted Answer

The answer of Find the future value of an annuity...

Question 13

If you borrow $10,000 for three years at a quarterly compounding interest rate of 4% per year, how much interest will you pay?

Accepted Answer

The answer of If you borrow $10,000 for three years...

Question 14

Find the future value of an annuity with weekly deposits of $50, made over a period of four years, with 6.8% interest compounded weekly.

Accepted Answer

The answer of Find the future value of an annuity...

Question 15

Which of these savings rates is most favorable?

Accepted Answer

A)  4% compounded quarterly 
B)  4% compounded semi-annually 
C)  4% compounded monthly 
D)  4% compounded annually 
A)  4% compounded quarterly 
B)  4% compounded semi-annually 
C)  4% compounded monthly 
D)  4% compounded annually

Question 16

Which is more costly: paying 11.5% simple interest for four years or paying 10% annual compounding interest for four years?

Accepted Answer

10% annual

Question 17

Bill takes out a conventional loan to purchase a car. The interest rate is 5.2% compounded monthly and Bill has 10 years to repay the $15,000 he borrowed. What are Bill's monthly payments?

Accepted Answer

The answer of Bill takes out a conventional loan to...

Question 18

Which of these savings rates is most favorable?

Accepted Answer

A)  6% compounded annually 
B)  5.8% compounded monthly 
C)  5.9% compounded quarterly 
D)  5.8% continuously compounded 
A)  6% compounded annually 
B)  5.8% compounded monthly 
C)  5.9% compounded quarterly 
D)  5.8% continuously compounded

Question 19

How much would you have to invest each month in an annuity earning 5% monthly to earn $5000 at the end of 18 years?

Accepted Answer

A)  $14.32 
B)  $36.05 
C)  $39.82 
D)  $40.26 
A)  $14.32 
B)  $36.05 
C)  $39.82 
D)  $40.26

Question 20

How much would you have to invest each quarter in an annuity earning 5.4% quarterly to earn $8000 at the end of 10 years?

Accepted Answer

The answer of How much would you have to invest...

Exam 22: Borrowing Models

A credit card bill shows a balance due of $750 with a minimum payment of $15 and a monthly interest rate of 1.62%. What is the APR?

David takes out a conventional loan to purchase a car. The interest rate is 4.8% compounded quarterly and David has four years to repay the $12,000 he borrowed. What are David's quarterly payments?

You invest $325 each quarter into an annuity earning 9% compounded quarterly. How much do you have at the end of 10 years?

How much would you have to invest each month in an annuity earning 6.5% monthly to earn $30,000 at the end of 15 years?

If you buy a 20-year annuity with an up-front payment of $50,000, and an interest rate of 6% compounded monthly, how much monthly income will you receive?

You have established an annuity plan that will accumulate to $50,000 in 10 years by investing $100 a month. If you instead invest $200 a month, what would your annuity accumulate?

Your rich Uncle Ralph is willing to loan you $5000 for 3 1/2 years and asks that you repay your loan with quarterly compounding interest at the rate of 8% per year. How much will you repay after 3 1/2 years?

Which of these savings rates is most favorable?

Ellie takes out a conventional loan to purchase a car. The interest rate is 7.5% compounded monthly and Ellie has four years to repay the $12,000 she borrowed. What are Ellie's monthly payments?

Find the future value of an annuity with monthly deposits of $150, made over a period of four years, with 5.2% interest compounded monthly.

Looking far ahead, your grandmother makes a one-time payment of $200,000 to obtain a monthly income for 20 years. Assuming a steady interest rate of 4% compounded monthly, what monthly payments will she receive?

Find the future value of an annuity with weekly deposits of $12, made over a period of five years, with 3.8% interest compounded weekly.

If you borrow $10,000 for three years at a quarterly compounding interest rate of 4% per year, how much interest will you pay?

Find the future value of an annuity with weekly deposits of $50, made over a period of four years, with 6.8% interest compounded weekly.

Which of these savings rates is most favorable?

Which is more costly: paying 11.5% simple interest for four years or paying 10% annual compounding interest for four years?

Bill takes out a conventional loan to purchase a car. The interest rate is 5.2% compounded monthly and Bill has 10 years to repay the $15,000 he borrowed. What are Bill's monthly payments?

Which of these savings rates is most favorable?

How much would you have to invest each month in an annuity earning 5% monthly to earn $5000 at the end of 18 years?

How much would you have to invest each quarter in an annuity earning 5.4% quarterly to earn $8000 at the end of 10 years?

Urban Services

Business Efficiency

Planning and Scheduling

Linear Programming

Exploring Data: Distributions

Exploring Data: Relationships

Data for Decisions

Probability: the Mathematics of Chance

Social Choice: the Impossible Dream

The Manipulability of Voting Systems

Weighted Voting Systems

Electing the President

Fair Division

Apportionment

Game Theory: the Mathematics of Competition

Identification Numbers

Information Science

Growth and Form

Symmetry and Patterns

Tilings

Savings Models

The Economics of Resources

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