Deck 5: Mathematics of Finance

Question 1

Find the interest. Round to the nearest cent.

- $\$ 400$ at $7 \%$ for 3 years

A)I nterest $=\$ 84.00$
B) Interest $=\$ 19.05$
C)I nterest $=\$ 8.40$
D) Interest $=\$ 933.33$

Answer 1

I nterest $=\$ 84.00$

Question 2

Find the interest. Round to the nearest cent.

- $\$ 1660$ at $7 \%$ for $3 \frac{1}{2}$ years

A) Interest $=\$ 406.70$
B) Interest $=\$ 830.00$
C) Interest $=\$ 40.67$
D) Interest $=\$ 33.20$

Answer 2

Interest $=\$ 406.70$

Question 3

Find the interest. Round to the nearest cent.

- $\$ 790$ at $8.8 \%$ for 10 months

A) Interest $=\$ 5793.00$
B) Interest $=\$ 6.95$
C) Interest $=\$ 57.93$
D) Interest $=\$ 695.16$

Answer 3

Interest $=\$ 57.93$

Question 4

Find the interest. Round to the nearest cent.

- $\$ 1180$ at $7.6 \%$ for 14 months

A) Interest $=\$ 6.41$
B) Interest $=\$ 1255.56$
C) Interest $=\$ 104.63$
D) Interest $=\$ 10,463.00$

Question 5

Find the interest. Round to the nearest cent.

- $\$ 600$ at $6.3 \%$ for 2 months

A) Interest $=\$ 630.00$
B) Interest $=\$ 75.60$
C) Interest $=\$ 18.90$
D) Interest $=\$ 6.30$

Question 6

Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent,if necessary.

- $\$ 2100$ at $5 \%$ for 63 days

A) $\$ 1.81$
B) $\$ 18.12$
C) $\$ 18.38$
D) $\$ 1.84$

Question 7

Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent,if necessary.

-A loan of $\$ 8500$ at $7 \%$ made on July 23 and due on November 30

A) $\$ 209.90$
B) $\$ 211.92$
C) $\$ 207.03$
D) $\$ 214.86$

Question 8

Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent,if necessary.

- $\$ 7220$ at $6.5 \%$ for 130 days

A) $\$ 154.29$
B) $\$ 469.30$
C) $\$ 169.47$
D) $\$ 167.15$

Question 9

Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent,if necessary.

-A loan of $\$ 97,000$ at $5.9 \%$ made on Feb 18 and due on June 30

A) $\$ 2146.13$
B) $\$ 2098.43$
C) $\$ 2069.69$
D) $\$ 2116.73$

Question 10

Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent,if necessary.

- $\$ 4600$ at $5.7 \%$ for 71 days

A) $\$ 51.00$
B) $\$ 5.17$
C) $\$ 51.71$
D) $\$ 5.10$

Question 11

Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent,if necessary.

-A loan of $\$ 8500$ at $6.6 \%$ made on July 2 and due on November 30

A) $\$ 235.31$
B) $\$ 230.63$
C) $\$ 232.08$
D) $\$ 227.47$

Question 12

For the given bond, whose interest rate is provided, find the semiannual interest payment and the total interest earnedover the life of the bond.

- $\$ 10,000$ FI National Corporation 11 -year bond at $1.5 \%$

A) $\$ 7500.00 ; \$ 165,000.00$
B) $\$ 5.00 ; \$ 1100.00$
C) $\$ 150.00 ; \$ 1650.00$
D) $\$ 75.00 ; \$ 1650.00$

Question 13

For the given bond, whose interest rate is provided, find the semiannual interest payment and the total interest earnedover the life of the bond.

- $\$ 2,000$ Max-Mart Stores 5 -year bond at $6.75 \%$

A) $\$ 67.50 ; \$ 675.00$
B) $\$ 60.00 ; \$ 600.00$
C) $\$ 135.00 ; \$ 675.00$
D) $\$ 6750.00 ; \$ 67,500.00$

Question 14

For the given bond, whose interest rate is provided, find the semiannual interest payment and the total interest earnedover the life of the bond.

- $\$16,000$ First Income Fund 4 -year bond at $1.15 \%$

A) $\$ 184.00 ; \$ 736.00$
B) $\$ 9200.00 ; \$ 73,600.00$
C) $\$ 92.00 ; \$ 736.00$
D) $\$ 88.00 ; \$ 704.00$

Question 15

For the given bond, whose interest rate is provided, find the semiannual interest payment and the total interest earnedover the life of the bond.

- $\$ 21,000$ First Income Fund 17 -year bond at $3.975 \%$

A) $\$ 41,737.50 ; \$ 1,419,075.00$
B) $\$ 416.85 ; \$ 14,172.90$
C) $\$ 417.38 ; \$ 14,190.75$
D) $\$ 834.75 ; \$ 14,190.75$

Question 16

Find the future value of the loan.

- $\$ 200.00$ loan at $5 \%$ for 5 months

A) $\$ 1004.17$
B) $\$ 209.17$
C) $\$ 204.17$
D) $\$ 250.00$

Question 17

Find the future value of the loan.

- $\$ 6100$ loan at $7.5 \%$ for 9 months

A) $\$ 10,217.50$
B) $\$ 6474.32$
C) $\$ 6443.13$
D) $\$ 6448.13$

Question 18

Find the future value of the loan.

- $\$ 700$ loan at $4.25 \%$ for 7 months

A) $\$ 908.25$
B) $\$ 722.35$
C) $\$ 717.35$
D) $\$ 718.93$

Question 19

Find the future value of the loan.

- $\$ 39,900$ loan at $5.5 \%$ for 4 months.

A) $\$ 40,631.50$
B) $\$ 406,315.00$
C) $\$ 48,678.00$
D) $\$ 113,050.00$

Question 20

Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.

- $\$ 24,000$ for 11 months; money earns $6 \%$

A) $\$ 22,857.14$
B) $\$ 22,641.51$
C) $\$ 1251.18$
D) $\$ 22,748.82$

Question 21

Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.

- $\$ 300$ for 9 months; money earns $2 \%$

A) $\$ 4.43$
B) $\$ 296.05$
C) $\$ 294.12$
D) $\$ 295.57$

Question 22

Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.

- $\$ 27,000$ for 140 days; money earns $2 \%$

A) $\$ 26,794.45$
B) $\$ 205.55$
C) $\$ 26,795.91$
D) $\$ 26,470.59$

Question 23

Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.

- $\$ 300$ for 327 days; money earns $3 \%$

A) $\$ 291.26$
B) $\$ 292.17$
C) $\$ 292.15$
D) $\$ 7.85$

Question 24

Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.

- $\$ 19,000$ for 11 months; money earns $5.6 \%$

A) $\$ 18,072.29$
B) $\$ 18,152.87$
C) $\$ 18,944.00$
D) $\$ 17,992.42$

Question 25

Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.

- $\$ 25,162$ for 147 days; money earns $6.8 \%$

A) $\$ 24,491.27$
B) $\$ 670.73$
C) $\$ 23,559.93$
D) $\$ 24,495.72$

Question 26

The given Treasury bill was sold in April of this year. Find (i) the price of the T-bill, and (ii) the actual interest rate paid by the Treasury. Round dollar amounts to the nearest cent and interest rates to the nearest thousandth.

-Three-month $\$ 3000 \mathrm{~T}$ -bill with discount rate $0.125 \%$

A) (i) $\$ 2998.88$ ;
(ii) About $0.15 \%$
B) (i) $\$ 2999.91$ ;
C) (i) $\$ 2999.06$ ;
(ii) About $0.013 \%$
(ii) About $0.125 \%$
D) (i) $\$ 3000.94$ ;
(ii) About $0.125 \%$

Question 27

The given Treasury bill was sold in April of this year. Find (i) the price of the T-bill, and (ii) the actual interest rate paid by the Treasury. Round dollar amounts to the nearest cent and interest rates to the nearest thousandth.

-Six-month $\$ 12,000 \mathrm{~T}$ -bill with discount rate $0.110 \%$

A) (i) $\$ 12,006.60$ ;
B) (i) $\$ 11,999.34$ ;
(ii) About $0.11 \%$
(ii) About $0.011 \%$
C) (i) $\$ 11,993.40$ ;
D) (i) $\$ 11,992.08$ ;
(ii) About $0.11 \%$
(ii) About $0.132 \%$

Question 28

The given Treasury bill was sold in April of this year. Find (i) the price of the T-bill, and (ii) the actual interest rate paid by the Treasury. Round dollar amounts to the nearest cent and interest rates to the nearest thousandth.

-Six-month $\$ 10,000 \mathrm{~T}$ -bill with discount rate $0.085 \%$

A) (i) $\$ 10,004.25$ ;
(ii) About $0.085 \%$
B) (i) $\$ 9994.90$ ;
C) (i) $\$ 9999.58$ ;
(ii) About $0.009 \%$
(ii) About $0.102 \%$
D) (i) $\$ 9995.75$ ;
(ii) About $0.085 \%$

Question 29

The given Treasury bill was sold in April of this year. Find (i) the price of the T-bill, and (ii) the actual interest rate paid by the Treasury. Round dollar amounts to the nearest cent and interest rates to the nearest thousandth.

-One-year $\$ 5000 \mathrm{~T}$ -bill with discount rate $0.095 \%$

A) (i) $\$ 5004.75$ ;
(ii) About $0.095 \%$
B) (i) $\$ 4995.25$ ;
(ii) About $0.095 \%$
C) (i) $\$ 4994.30$ ;
D) (i) $\$ 4999.53$ ;
(ii) About $0.114 \%$
(ii) About $0.01 \%$

Question 30

Solve the problem.

-How much must Harry's Hardware deposit at $3.5 \%$ interest for 210 days in order to earn $\$ 500.00$ interest? Round to the nearest dollar.

A) $\$ 12,245$
B) $\$ 14,286$
C) $\$ 24,490$
D) $\$ 24,830$

Question 31

Solve the problem.

-Novelties-and-Such borrowed $\$ 300$ for 100 days and paid $\$ 2.88$ in interest. Find the rate of interest on the loan. Round to the nearest tenth.

A) $3.0 \%$
B) $3.7 \%$
C) $4.0 \%$
D) $3.5 \%$

Question 32

Solve the problem.

-Allan borrowed $\$ 4800$ from his father to buy a car. He repaid him after 10 months with interest of $10 \%$ . Find the total amount he repaid.

A) $\$ 5160.00$
B) $\$ 5200.00$
C) $\$ 400.00$
D) $\$ 5280.00$

Question 33

Solve the problem.

-Tuition of $\$ 3500$ is due when the spring term begins, in 2 months. What amount should a student deposit today, at $8 \%$ , to have enough to pay tuition?

A) $\$ 3240.74$
B) $\$ 3453.95$
C) $\$ 3476.82$
D) $\$ 46.05$

Question 34

Solve the problem.

-Ted owes $\$ 15,000$ to Mary. The loan is payable in 1 year at $10 \%$ . Mary needs cash, so 10 months before the loan is payable she goes to her bank which will pay her the maturity value of the note less a $11 \%$ discount fee. Find the amount Mary will receive.

A) $\$ 13,475.00$
B) $\$ 1512.50$
C) $\$ 14,987.50$
D) $\$ 14,836.25$

Question 35

Solve the problem.

-A company has ordered 5 new personal computers at a cost of $\$ 1700$ each. They will not be delivered for 11 months. What amount should the firm deposit in an account paying $7.32 \%$ to have enough money to pay for them?

A) $\$ 4112.04$
B) $\$ 7965.51$
C) $\$ 8011.31$
D) $\$ 7920.24$

Question 36

Solve the problem.

-A $\$ 8920$ note is signed, for 40 days, at a discount rate of $6.5 \%$ . Find the proceeds.

A) $\$ 8340.20$
B) $\$ 8856.46$
C) $\$ 8920.00$
D) $\$ 8855.58$

Question 37

Solve the problem.

-A note with a face value of $\$ 9000$ was discounted at $5 \%$ . If the discount was $\$ 185$ , find the length of the loan in days.

A) 180 days
B) 150 days
C) 120 days
D) 148 days

Question 38

Solve the problem.

-Leon Harding receives proceeds of $\$ 4842$ after signing a 120 -day note for $\$ 5000$ . Find the discount rate. Round to the nearest tenth.

A) $9.6 \%$
B) $7.6 \%$
C) $4.8 \%$
D) $3.2 \%$

Question 39

Solve the problem.

-Mark Golden needs $\$ 7842.71$ to pay for remodeling work. His bank loans money at a discount rate of $7 \%$ for 150 days. Find the face value of a loan so he will have $\$ 7842.71$ .

A) $\$ 8078.33$
B) $\$ 8391.70$
C) $\$ 7842.71$
D) $\$ 8075.00$

Question 40

Find the compound amount for the deposit. Round to the nearest cent.

- $\$ 15,000$ at $3 \%$ compounded annually for 19 years

A) $\$ 26,302.59$
B) $\$ 25,536.50$
C) $\$ 23,550.00$
D) $\$ 23,100.00$

Question 41

Find the compound amount for the deposit. Round to the nearest cent.

- $\$ 4000$ at $5 \%$ compounded semiannually for 12 years

A) $\$ 7183.43$
B) $\$ 7234.90$
C) $\$ 5379.56$
D) $\$ 6400.00$

Question 42

Find the compound amount for the deposit. Round to the nearest cent.

- $\$ 1900$ at $5 \%$ compounded quarterly for 4 years

A) $\$ 2309.46$
B) $\$ 1996.80$
C) $\$ 2317.79$
D) $\$ 2280.00$

Question 43

Find the compound amount for the deposit. Round to the nearest cent.

- $\$ 1200$ at $6 \%$ compounded annually for 19 years

A) $\$ 3630.72$
B) $\$ 3425.21$
C) $\$ 2568.00$
D) $\$ 2496.00$

Question 44

Find the compound amount for the deposit. Round to the nearest cent.

- $\$ 7980$ at $3 \%$ compounded semiannually for 12 years

A) $\$ 11,407.43$
B) $\$ 11,377.57$
C) $\$ 10,852.80$
D) $\$ 9541.03$

Question 45

Find the compound amount for the deposit. Round to the nearest cent.

- $\$ 8304$ at $8 \%$ compounded daily for 4 years

A) $\$ 11,435.27$
B) $\$ 3597.87$
C) $\$ 11,435.67$
D) $\$ 2252.21$

Question 46

Find the compound amount for the deposit. Round to the nearest cent.

- $\$ 24,391$ at $8.5 \%$ compounded daily for 5 years

A) $\$ 15,820.25$
B) $\$ 37,306.39$
C) $\$ 16,974.92$
D) $\$ 44,443.30$

Question 47

Find the compound amount for the deposit. Round to the nearest cent.

- $\$ 9000$ at $0.78 \%$ compounded monthly for 2 years.

A) $\$ 9011.70$
B) $\$ 10,514.13$
C) $\$ 9141.45$
D) $\$ 10,844.94$

Question 48

Find the compound amount for the deposit. Round to the nearest cent.

- $\$ 110,000$ at $1.41 \%$ compounded quarterly for 5 years.

A) $\$ 111,952.47$
B) $\$ 145,548.70$
C) $\$ 117,976.80$
D) $\$ 118,020.27$

Question 49

Find the compound interest earned by the deposit. Round to the nearest cent.

- $\$ 11,000$ at $3 \%$ compounded annually for 13 years

A) $\$ 4290.00$
B) $\$ 4683.37$
C) $\$ 3960.00$
D) $\$ 5153.87$

Question 50

Find the compound interest earned by the deposit. Round to the nearest cent.

- $\$ 16,000$ at $8 \%$ compounded semiannually for 6 years

A) $\$ 9389.99$
B) $\$ 9616.52$
C) $\$ 4245.10$
D) $\$ 7680.00$

Question 51

Find the compound interest earned by the deposit. Round to the nearest cent.

- $\$ 1400$ at $4 \%$ compounded quarterly for 4 years

A) $\$ 237.80$
B) $\$ 224.00$
C) $\$ 241.61$
D) $\$ 1456.85$

Question 52

Find the compound interest earned by the deposit. Round to the nearest cent.

- $\$ 1950$ at $3.7 \%$ compounded annually for 18 years

A) $\$ 1298.70$
B) $\$ 1666.38$
C) $\$ 1226.55$
D) $\$ 1800.18$

Question 53

Find the compound interest earned by the deposit. Round to the nearest cent.

- $\$ 1260$ at $4.1 \%$ compounded semiannually for 10 years

A) $\$ 516.60$
B) $\$ 630.74$
C) $\$ 283.48$
D) $\$ 623.12$

Question 54

Find the compound interest earned by the deposit. Round to the nearest cent.

- $\$ 4000$ at $4 \%$ compounded quarterly for $\frac{3}{4}$ year

A) $\$ 121.20$
B) $\$ 499.46$
C) $\$ 480.00$
D) $\$ 119.41$

Question 55

Find the compound interest earned by the deposit. Round to the nearest cent.

- $\$ 5000$ at $0.81 \%$ compounded monthly for 2 years.

A) $\$ 1068.16$
B) $\$ 6.75$
C) $\$ 81.63$
D) $\$ 876.10$

Question 56

Find the compound interest earned by the deposit. Round to the nearest cent.

- $\$ 110,000$ at $1.21 \%$ compounded quarterly for 5 years.

A) $\$ 29,914.00$
B) $\$ 6818.01$
C) $\$ 1673.85$
D) $\$ 6849.76$

Question 57

Find the interest rate (with annual compounding) that makes the statement true. Round to the nearest tenth whennecessary.

- $\$ 8000$ grows to $\$ 8652.80$ in 2 years

A) $4 \%$
B) $4.25 \%$
C) $2.5 \%$
D) $2 \%$

Question 58

Find the interest rate (with annual compounding) that makes the statement true. Round to the nearest tenth whennecessary.

- $\$ 4692$ grows to $\$ 5767.67$ in 6 years

A) $6 \%$
B) $6.5 \%$
C) $3 \%$
D) $3.5 \%$

Question 59

Find the interest rate (with annual compounding) that makes the statement true. Round to the nearest tenth whennecessary.

- $\$ 782$ grows to $\$ 1071.53$ in 10 years

A) $4.75 \%$
B) $3.2 \%$
C) $4.95 \%$
D) $3.5 \%$

Question 60

Find the interest rate (with annual compounding) that makes the statement true. Round to the nearest tenth whennecessary.

- $\$ 611$ grows to $\$ 1621.16$ in 20 years

A) $2.3 \%$
B) $5.95 \%$
C) $5.5 \%$
D) $5 \%$

Question 61

Find the interest rate (with annual compounding) that makes the statement true. Round to the nearest tenth whennecessary.

- $\$ 14,000$ grows to $\$ 18,814.83$ in 10 years

A) $10.5 \%$
B) $3.25 \%$
C) $3 \%$
D) $10.75 \%$

Question 62

Find the interest rate (with annual compounding) that makes the statement true. Round to the nearest tenth whennecessary.

- $\$ 5000$ grows to $10,028.87$ in 13 years.

A) $5.05 \%$
B) $5.45 \%$
C) $3.8 \%$
D) $5.5 \%$

Question 63

Find the compound amount and the interest earned when the given investment has continuous compounding.

- $\$ 13,000$ at $2.8 \%$ for 3 years

A) $\$ 14,092.00 ; \$ 1092.00$
B) $\$ 14,540.67 ; \$ 1540.67$
C) $\$ 14,139.18 ; \$ 1139.18$
D) $\$ 13,369.14 ; \$ 369.14$

Question 64

Find the compound amount and the interest earned when the given investment has continuous compounding.

- $\$ 110,000$ at $4.6 \%$ for 17 years

A) $\$ 240,442.35 ; \$ 130,442.35$
B) $\$ 251,761.03 ; \$ 141,761.03$
C) $\$ 11,517.82 ; \$ 5178.19$
D) $\$ 118,602.00 ; \$ 8602.00$

Question 65

Solve the problem.

-Find the face value (to the nearest thousand dollars) of the 15 -year zero-coupon bond at $4.4 \%$ (compounded semiannually) with a price of $\$ 20,823$ .

A) $\$ 45,800$
B) $\$ 45,000$
C) $\$ 40,500$
D) $\$ 40,000$

Question 66

Solve the problem.

-Find the face value (to the nearest thousand dollars) of the 20 -year zero-coupon bond at $5.4 \%$ (compounded semiannually) with a price of $\$ 17,225$ .

A) $\$ 50,000$
B) $\$ 20,200$
C) $\$ 49,500$
D) $\$ 20,000$

Question 67

Solve the problem.

-Find the face value (to the nearest thousand dollars) of the 30 -year zero-coupon bond at $6.2 \%$ (compounded semiannually) with a price of $\$ 8007$ .

A) $\$ 60,000$
B) $\$ 50,000$
C) $\$ 60,800$
D) $\$ 50,500$

Question 68

Solve the problem.

-Find the face value (to the nearest thousand dollars) of the 30 -year zero-coupon bond at $3.7 \%$ (compounded semiannually) with a price of $\$ 19,975$ .

A) $\$ 60,000$
B) $\$ 40,800$
C) $\$ 60,500$
D) $\$ 40,000$

Question 69

Solve the problem.

-Find the price (to the nearest cent) you should be willing to pay for the 15 -year $\$ 10,000$ bond with interest at $4.1 \%$ (compounded semiannually).

A) $\$ 5440.14$
B) $\$ 940.12$
C) $\$ 10,880.27$
D) $\$ 2995.56$

Question 70

Solve the problem.

-Find the price (to the nearest cent) you should be willing to pay for the 15 -year $\$ 20,000$ bond with interest at $6.5 \%$ ( compounded semiannually).

A) $\$ 15,323.51$
B) $\$ 3023.72$
C) $\$ 511.30$
D) $\$ 7661.75$

Question 71

Find the APY corresponding to the given nominal rates.

- $5 \%$ compounded semiannually

A) $5.00 \%$
B) $5.12 \%$
C) $5.09 \%$
D) $5.06 \%$

Question 72

Find the APY corresponding to the given nominal rates.

- $5 \%$ compounded quarterly

A) $5.06 \%$
B) $5.12 \%$
C) $5 \%$
D) $5.09 \%$

Question 73

Find the APY corresponding to the given nominal rates.

- $7 \%$ compounded monthly

A) $6.65 \%$
B) $7.3 \%$
C) $8.08 \%$
D) $7.23 \%$

Question 74

Find the APY corresponding to the given nominal rates.

- $6 \%$ compounded daily (assume 365 days per year)

A) $6.12 \%$
B) $6.2 \%$
C) $7.03 \%$
D) $6.18 \%$

Question 75

Find the amount that should be invested now to accumulate the following amount, if the money is compounded asindicated.

- $\$ 6700$ at $5 \%$ compounded annually for $4 \mathrm{yr}$

A) $\$ 1187.89$
B) $\$ 5512.11$
C) $\$ 8143.89$
D) $\$ 5787.71$

Question 76

Find the amount that should be invested now to accumulate the following amount, if the money is compounded asindicated.

- $\$ 26,100$ at $5 \%$ compounded annually for $3 \mathrm{yr}$

A) $\$ 30,214.01$
B) $\$ 3553.84$
C) $\$ 23,673.47$
D) $\$ 22,546.16$

Question 77

Find the amount that should be invested now to accumulate the following amount, if the money is compounded asindicated.

- $\$ 9000$ at $6 \%$ compounded semiannually for $4 \mathrm{yr}$

A) $\$ 7104.68$
B) $\$ 1895.32$
C) $\$ 11,400.93$
D) $\$ 7128.84$

Question 78

Find the amount that should be invested now to accumulate the following amount, if the money is compounded asindicated.

- $\$ 44,000$ at $5 \%$ compounded semiannually for $4 \mathrm{yr}$

A) $\$ 53,609.73$
B) $\$ 36,198.91$
C) $\$ 36,112.85$
D) $\$ 7887.15$

Question 79

Find the amount that should be invested now to accumulate the following amount, if the money is compounded asindicated.

- $\$ 3500$ at $4 \%$ compounded quarterly for $12 \mathrm{yr}$

A) $\$ 1329.09$
B) $\$ 2186.09$
C) $\$ 2170.91$
D) $\$ 5642.79$

Question 80

Solve the problem. Round to the nearest cent.

-If inflation is $2 \%$ a year compounded annually, what will it cost in 7 years to buy a house currently valued at $\$ 63,000$ ?

A) $\$ 70,948.23$
B) $\$ 67,544.53$
C) $\$ 73,814.54$
D) $\$ 72,367.20$