FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 26

What rate of interest did you earn? 8. (Set 2) Your credit card
company charges you 1.00 percent per month. What is the annual
percentage rate on your account? 9. (Set 1) What is the future value of
$920 a year for 5 years at a 6 percent interest? 9. (Set 2) Your credit
card company charges you 1.00 percent per month. What is the annual
percentage rate on your account? 10.You just paid $361,000 for an
annuity that will pay you and your heirs $12,300 a year forever. What
rate of return are you earning on this policy? Some time ago, Julie
purchased eleven acres of land costing $15,590. Today, that land is
valued at $63,123. How long has she owned this land if the price of
the land has been increasing at 6 percent per year? 11.First City Bank
pays 6 percent simple interest on its savings account balances,
whereas Second City Bank pays 6 percent interest compounded
annually. If you made a $57,000 deposit in each bank, how much
more money would you earn from your Second City Bank account at
the end of 10 years? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.) 11. (Set 2) First
City Bank pays 6 percent simple interest on its savings account
balances, whereas Second City Bank pays 6 percent interest
compounded annually. If you made a $60,000 deposit in each bank,
how much more money would you earn from your Second City Bank
account at the end of 10 years? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
11450.86 12.a. Compute the future value of $2,000 compounded
annually for 10 years at 7 percent. (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. Compute the future value of $2,000 compounded annually for 10
years at 12 percent. (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.) c. Compute the
future value of $2,000 compounded annually for 15 years at 7 percent.
(Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.) 12