Question

1

Your grandmother invested $2,300 for you on the day you were born. This investment has earned an average of 13.8 percent annually. How old are you if the investment is now worth $18,642?

14.36 years

14.58 years

15.15 years

16.19 years

2.

You just inherited $7,100 which you are investing at 7.25 percent interest. How long will you have to wait until your account reaches a value of $12,000?

6.96 years

8.34 years

7.50 years

8.55 years

3.

First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually.

  

If you made a $73,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 9 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

Please answer all the questions. Thank you.

Answer 1