FIN 571 TUTOR Motivated Minds/fin571tutor.com FIN 571 TUTOR Motivated Minds/fin571tutor.com | Page 35

8.One year ago, you invested $2,690. Today it is worth $3,800.50. 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.)