Quiz 2
You wish to save $500,000 in the next 25 years. You notice that a corporate bond
fund earns about 11 percent per year and that is where you put your savings. How
much must you save each year to obtain your goal?
$20,000.00
$2,000.00
$4,370.13
$3,749.98
If the present ...
Quiz 2
You wish to save $500,000 in the next 25 years. You notice that a corporate bond
fund earns about 11 percent per year and that is where you put your savings. How
much must you save each year to obtain your goal?
$20,000.00
$2,000.00
$4,370.13
$3,749.98
If the present value of a given sum is equal to its future value, then
there is no inflation
the discount rate must be very high
none of the answers is correct
the discount rate must be zero
If you invest the $10,000 you receive at graduation (age 22) in a mutual fund that
averages a 12% annual return, how much will you have at the retirement in 40
years?
$783,879
$930,510
$909,090
$510,285
Your brother, who is 6 years old, just received a trust fund that will be worth
$25,000 when he is 21 years old. If the fund earns 10 percent interest compounded
annually, what is the value of the fund today?
$6,575
$5,985
$6,875
$104,602
The earnings of Omega Supply Company have grown from $2.00 per share to $4.00
per share over a nine year time period. Determine the compound annual growth
rate.
22.2%
100%
8%
11.1%
Determine how much $1,000 deposited in a savings account paying 8%
(compounded annually) will be worth after 5 years.
$784
$1,469
$5,526
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