41.You receive a windfall of $10,000. Your debt from student loans is $17,720. If you invest the entire amount today at 10% interest, how long will it take to accumulate enough to cover your debt for student loans?
a.8 years
b.7 years
c.6 years
d.not enough information to determine
42.Determining the monthly payments necessary to pay off a car loan of $25,000 in 5 years involves which of the following concepts?
a.present value of a single amount
b.present value of an annuity
c.future value of an annuity
d.future value of a single amount
43.If you invest $4,000 for five years at 8% interest, what would be the total amount of interest earned by the investment?
a.$5,877
b.$1,039
c.$1,877
d.$4,654
44.George has five years to save for his freshman year tuition of $15,000, how much money must George deposit into a 6% savings account every year?
a.$3,000
b.$2,661
c.$2,150
d.$2,205
45.Which of the following combinations of interest rate and number of periods is needed for calculating the present value of an investment that involves an annual interest rate of 12% for three years with monthly compounding?
Number of periods Interest rate
a.3 12%
b.6 6%
c.12 3%
d.36 1%
46.Mondo Cano Enterprises, borrowed $100,000 from a bank at 12% annual interest and arranged to repay it over two years with monthly payments. How much is the payment?
a.$4,707
b.$4,167
c.$4,541
d.$4,889
47.If $69,840 is invested today at 7% per year, how many years will it take to be worth $120,000?
a.7 years
b.8 years
c.9 years
d.10 years
48.Under a loan amortization payment schedule, the amount of interest expense per period will
a.increase as a percentage of the loan payment as the loan is repaid
b.decrease as a percentage of the loan payment as the loan is repaid
c.be constant through the life of the loan
d.be equal to one-half the loan payment each period
49.Bollinger Enterprises borrowed $10,000 for 2 years at a 12% annual rate. If payments of $471 are made monthly, what is the interest expense for the second month?
a.$100
b.$96
c.$93
d.$89