Personal Finance Calculations Test

Bill invests $500 a year from age 25 to 60 and gets an average rate of return of 8%. Joe invests $400 a year from age 25 to 60 and gets an average rate of return of 9%. Who will have more money at age 60?

• Bill

• Joe

• both will have the same amount of money at age 60

Bill invests $2000 a year from age 25 to 50 and gets an average rate of return of 9%. Joe invests $2400 a year from age 25 to 40 and gets an average rate of return of 8%. Who will have more money at age 60?

• Bill

• Joe

• both will have the same amount of money at age 60

Bill invests $200 a year from age 25 to 35 and gets an average rate of return of 8%. Joe invests $400 a year from age 45 to 60 and gets an average rate of return of 12%. Who will have more money at age 60?

• Bill

• Joe

• both will have the same amount of money at age 60

Bill invests $500 a year from age 25 to 40 and gets an average rate of return of 8%. Joe invests $500 a year from age 35 to 60 and gets an average rate of return of 8%. Who will have more money at age 60?

• Bill

• Joe

• both will have the same amount of money at age 60

Bill invests $4000 a year from age 25 to 40 and gets an average rate of return of 7%. Joe invests $5000 a year from age 35 to 60 and gets an average rate of return of 8%. Who will have more money at age 60?

• Bill

• Joe

• both will have the same amount of money at age 60

If you invest $6,000 a year from age 25 to age 60 and get an average rate of return of 8%, what will the account balance be at the age of 60?

• $1,212,422

• $1,000,000

• $1,428,736

• $1,374,288

If you invest $6,000 a year from age 25 to age 60 and get an average rate of return of 10%, what will the account balance be at the age of 60?

• $1,974,237

• $1,000,000

• $1,428,736

• $2,431,611

If you invest $6,000 a year from age 25 to age 60 and get an average rate of return of 8%, what will the account balance be at the age of 70?

• $1,212,422

• $1,000,000

• $2,617,528

• $2,455,192

If you invest $6,000 a year from age 25 to age 60 and get an average rate of return of 10%, what will the account balance be at the age of 70?

• $6,212,422

• $5,120,662

• $3,617,528

• $5,455,192

If you put $250 into your retirement account at age 18 and starting at age 19 you add $20 a month to the account until you turn 60, what will the value be at age 60? Assume 8% average rate of return.

• $85,702

• $103,499

• $157,398

• $13,413