Financial Math Review

Javier bought a new computer system. To pay for the system, he borrowed $4260 from the credit union at 11.83% interest for 120 days. Find the interest and future value.

(a)  

• I=$166.63
• I=$168.03
• I=$168.03
• I=504.73

Find the balance in the account after the given period.

$5000 deposit earning 1.5% compounded quarterly after 3 years

(a)  

• $5,229.70
• $7,604.38
• $7,777.27
• $5,538.86

A college receives a donation of $955,000 that earns 5.33% interest compounded daily. How much interest would the college earn in one year?

(a)  

• $52,278.53
• $50,901.50
• $1,005,901.50
• $1,007,278.53

Following the birth of a grandchild, Mira Bell wants to set up a trust fund that will be worth $120,000 on the child's 18th birthday. Mira secures an interest rate at 3.6% compounded quarterly. What amount should she deposit to achieve her goal?

• $62953.12

• $229,405.63

• $3,246.31

• $59,804.82

Ilman is buying a home for $300,000. The bank is requiring a down payment of 20% of the total cost. They obtain a 30-year mortgage at 4.2% interest rate for the home. What is his down payment amount?

• $60,000

• $12,600

• $6,000

• $1,260

What is the definition of annuity ?

• A series of equal amount of payment /deposits made at equal intervals time

• A series of equal amount of discount made at equal intervals time

• A series of equal amount of annuity made at equal intervals time

• A series of marvel movie !

Cynthia invested $2,000 at 4% annually for 10 years. Every year she deposited $2,000 into the account. What is her future value after 10 years?

• $44,512.78

• $24,512.78

• $24,512.19

• $24,012.22

You make $500 monthly payments into an annuity that earns 4% annual interest that is compounded monthly. If you are calculating how much this annuity will be worth in 10 years, which equation would you use?

• Desired Periodic Payment

• Future Value

• Sinking Funds

• Present Value

You are saving up for your daughters wedding which is still 3 years out. You have estimated that you will need $20,000 and have found an investment that offers 4% annual interest that is compounded monthly. How much should be deposited each month for 3 years?

• $247.94

• $451.58

• $398.43

• $468.59

Find the balance in the account after the given period.

$5000 deposit earning 1.5% compounded quarterly after 3 years

(a)  

• $5,229.70
• $7,604.38
• $7,777.27
• $5,538.86