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finance.rtfQuestion 1 3 pts <p>Money has value because:</p> Money has value because:
the supply is unlimited.
the demand is limited.
both the demand and supply are limited.
the supply is limited while the demand is unlimited.
the demand is limited while the supply is unlimited.
Flag this Question Question 2 3 pts <p>Which one of the following statements is correct?</p> Which one of the following statements is correct?
Paper currency is printed in Washington, D.C. and Philadelphia, PA.
All the paper currency in the U.S. is printed in Washington, D.C.
Coins, such as nickels and dimes, are minted by the U.S. Mint in Washington, D.C.
Federal Reserve notes are no longer available in the U.S.
The U.S. dollar bill is backed by the full faith and credit of the U.S. government.
Flag this Question Question 3 3 pts <p>What is the APY of 9 percent compounded quarterly?</p> What is the APY of 9 percent compounded quarterly?
2.25 percent
9.00 percent
9.16 percent
9.31 percent
9.42 percent
Flag this Question Question 4 3 pts <p>Which one of the following statements is correct?</p> Which one of the following statements is correct?
Simple interest is the same as interest compounded annually.
A borrower would prefer a loan with 6 percent interest compounded monthly over a loan with 6 percent interest compounded daily.
Investors are indifferent to the interest compounding period.
Investors prefer interest be compounded annually rather than quarterly.
Unless you invest for more than one year, it makes no difference how frequently interest on your savings is compounded.
Flag this Question Question 5 3 pts Skip to question text. Kate deposited $500 five years ago into a savings account and earns 6 percent simple interest. Rachel deposited $500 five years ago and earns 6 percent interest compounded annually. Which one of the following statements is correct given this information?
Kate has earned a total of $300 in interest.
Rachel has a savings account balance today of $728.22.
Rachel and Kate have the same amount in their savings accounts today.
Rachel has $22.48 more in her savings account today than Kate has.
Kate has an account balance today of $650.00.
Flag this Question Question 6 3 pts <p>You want to have $25,000 saved in fifteen years to purchase a boat. How much would you have to deposit today at 7 percent interest, compounded annually, to meet this goal? Assume you do not add any additional funds to your investment account.</p> You want to have $25,000 saved in fifteen years to purchase a boat. How much would you have to deposit today at 7 percent interest, compounded annually, to meet this goal? Assume you do not add any additional funds to your investment account.
$7,288.47
$8,605.81
$9,061.15
$9,748.27
$10,224.60
Flag this Question Question 7 3 pts <p>Faith has saved $600 a year for the past 20 years. Isaac has saved $600 a year for the past 10 years. How much more does Faith have in her account today as compared to Isaac? Both Faith and Isaac earn 5 percent interest compounded annually.</p> Faith has saved $600 a year for the past 20 years. Isaac has saved $600 a year for the past 10 years. How much more does Faith have in her account today as compared to Isaac? Both Faith and Isaac earn 5 percent interest compounded annually.
$6,000.00
$8,429.67
$9,003.13
$11,475.68
$12,292.83
Flag this Question Question 8 3 pts <p>Martha would like a retirement income of $45,000 a year for 30 years. How much money does she need to have saved on the day she retires if she can earn 6 percent compounded annually on her investments?</p> Martha would like a retirement income of $45,000 a year for 30 years. How much money does she need to have saved on the day she retires if she can earn 6 percent compounded annually on her investments?
$619,417.40
$778,006.16
$802,429.98
$997,878.78
$1,003,414.06
Flag this Question Question 9 3 pts <p>Matt wants to purchase a new vehicle which costs $28,795. He has cash and a trade-in with a combined value of $8,500. What will his monthly payment be if he finances the remainder for three years at 6 percent interest, compounded monthly?</p> Matt wants to purchase a new vehicle which costs $28,795. He has cash and a trade-in with a combined value of $8,500. What will his monthly payment be if he finances the remainder for three years at 6 percent interest, compounded monthly?
$524.63
$598.03
$617.41
$688.09
$724.50
Flag this Question Question 10 3 pts <p>Theo wants to buy a new motorcycle. He has a down payment of $500 and can afford monthly payments of $265 per month for four years. What price of motorcycle can he afford? His bank has agreed to lend him the funds at 9 percent interest.</p> Theo wants to buy a new motorcycle. He has a down payment of $500 and can afford monthly payments of $265 per month for four years. What price of motorcycle can he afford? His bank has agreed to lend him the funds at 9 percent interest.
$9,786.48
$10,648.97
$10,899.09
$11,148.97
$11,399.09
