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41.
Theo needs $40,000 as a down payment for a house 6 years from now. He
earns 2.5 percent on his savings. Theo can either deposit one lump sum
today for this purpose or he can wait a year and deposit a lump sum. How
much additional money must he deposit if he waits for one year rather than
making the deposit today?
42.
One year ago, you invested $1,800. Today it is worth $1,924.62. What rate of
interest did you earn?
43.
According to the Rule of 72, you can do which one of the following?
44.
Forty years ago, your mother invested $5,000. Today, that investment is
worth $430,065.11. What is the average annual rate of return she earned on
this investment?
45.
Sixteen years ago, Alicia invested $500. Eight years ago, Travis invested
$900. Today, both Alicia's and Travis' investments are each worth $2,400.
Assume that both Alicia and Travis continue to earn their respective rates of
return. Which one of the following statements is correct concerning these
investments?
46.
Penn Station is saving money to build a new loading platform. Two years
ago, they set aside $24,000 for this purpose. Today, that account is worth
$28,399. What rate of interest is Penn Station earning on this investment?
47.
Ten years ago, Jackson Supply set aside $130,000 in case of a financial
emergency. Today, that account has increased in value to $330,592. What
rate of interest is the firm earning on this money?
48.
Fourteen years ago, your parents set aside $7,500 to help fund your college
education. Today, that fund is valued at $26,180. What rate of interest is
being earned on this account?
49.
Some time ago, Julie purchased eleven acres of land costing $36,900.
Today, that land is valued at $214,800. How long has she owned this land if
the price of the land has been increasing at 6 percent per year?
50.
On your ninth birthday, you received $300 which you invested at 4.5 percent
interest, compounded annually. Your investment is now worth $756. How
old are you today?
51.
Assume the total cost of a college education will be $300,000 when your
child enters college in 16 years. You presently have $75,561 to invest. What
rate of interest must you earn on your investment to cover the cost of your
child's college education?
52.
At 8 percent interest, how long would it take to quadruple your money?
53.
Assume the average vehicle selling price in the United States last year was
$41,996. The average price 9 years earlier was $29,000. What was the
annual increase in the selling price over this time period?
54.
You're trying to save to buy a new $160,000 Ferrari. You have $58,000 today
that can be invested at your bank. The bank pays 6 percent annual interest
on its accounts. How many years will it be before you have enough to buy
the car? Assume the price of the car remains constant.
