# What would be the yearly earnings for a person with $6200 in savings at an annual interest rate of 24.0% percent?

What would be the yearly earnings for a person with $6200 in savings at an annual interest rate of 24.0% percent?

**(****Round your answer to the nearest whole number.** **Do not include ****the comma, period, and “$” sign in your response.)**

Your Answer:

Question 1 options:

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**Question 2** (1 point)

What is the future value of $3130 10 years from now at 2 percent?

Use the appropriate Time Value of Money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D]

**(Round your answer to the nearest whole number. Do not include the comma, period, and “$” sign in your response.)**

Your Answer:

Question 2 options:

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**Question 3** (1 point)

What is the future value of $1950 saved each year for 7 years at 10 percent?

Use the appropriate Time Value of Money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D]

**(Round your answer to the nearest whole number. Do not include the comma, period, and “$” sign in your response.)**

Your Answer:

Question 3 options:

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**Question 4** (1 point)

What is the amount a person would have to deposit today (present value) at 5 percent interest rate to have $10650 saved 16 years from now.

Use the appropriate Time Value of Money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D]

**(Round your answer to the nearest whole number. Do not include the comma, period, and “$” sign in your response.)**

Your Answer:

Question 4 options:

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**Question 5** (1 point)

What is the amount you would have to deposit today to be able to take out $4500 a year for 16 years from an account earning 3 percent.

Your Answer:

Question 5 options:

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**Question 6** (1 point)

If you desire to have $40900 for a down payment for a house in 10 years, what amount would you need to deposit today? Assume that your money will earn 6 percent.

Your Answer:

Question 6 options:

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**Question 7** (1 point)

Pete Morton is planning to go to graduate school in a program of study that will take 2 years. Pete wants to have $21900 available each year for various school and living expenses. If he earns 5 percent on his money, how much must be deposit at the start of his studies to be able to withdraw $21900 a year for 2 years?

Your Answer:

Question 7 options:

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**Question 8** (1 point)

Carla Lopez deposits $6980 a year into her retirement account. If these funds have an average earning of 3 percent over the 15 years until her retirement, what will be the value of her retirement account?

Your Answer:

Question 8 options:

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**Question 9** (1 point)

If a person spends $22 a week on coffee (52 weeks in a year), what would be the future value of that amount over 15years if the funds were deposited in an account earning 6 percent?

Your Answer:

Question 9 options:

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#### Chapter 1 LO 1.3

**Question 10** (1 point)

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Question 10 options:

A financial company that advertises on television will pay you $61,000 now for annual payments of $9,400 that you are expected to receive for a legal settlement over the next 11 years. Assume you estimate the time value of money at 12 percent.

Use the appropriate time value of money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D].

(a) What is the present value?

**(Round your answer to the nearest whole number. Omit the comma, period, and “$” sign in your response.)**

(b) Would you accept this offer?

**[Enter “Yes” or “No”]**

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