Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
5 Cards in this Set
- Front
- Back
|
Erika opened a savings account today and she immediately put $10,000 into it. She plans to contribute another $25,000 one year from now, and $50,000 two years from now. The savings account pays a 7% annual interest rate. If she makes no other deposits or withdrawals, how much will she have in the account 10 years from today?
|
$151,542
|
|
|
A friend just bought a house and obtained a 15-year (180-month), $300,000 mortgage with a 7% nominal interest rate. What percentage of the first monthly payment will go toward paying interest?
|
64.90%
|
|
|
South Penn Trucking is financing a new truck with a loan of $82,400 to be repaid with a lump sum in 5 years of $124,424. What annual interest rate is the company paying?
|
8.59%
|
|
|
Today is your 23rd birthday, and you just received a gift of $1,500. You have used the money to open up a brokerage account. Your plan is to contribute an additional $2,300 to the account each year on your birthday, up through and including your 65th birthday, starting next year. The account has an annual expected return of 10%. How much do you expect to have in the account right after you make the final $2,300 contribution on your 65th birthday?
|
$1,318,711
|
|
|
Your firm needs to finance an expansion program. One bank offers to lend funds at a quoted rate is 10.1%, compounded quarterly and the principal must be repaid at the end of the year. A second lender offers 9.4%, daily compounding (365-day year), with interest and principal due at the end of the year. What is the difference in the effective annual rates (EFF%) charged by the two banks?
|
0.63%
|
