i>clicker Questions for March 2
I will probably ask these in the order: 1, 12, 2, 14, 15, 9, and 7 (that roughly organizes them by topic and difficulty).
1. You invested $1,650 in an account that pays 5 percent
simple interest. How much more could you have earned over a 20-year period if
the interest had compounded annually?
2. Assume the average vehicle selling price in the United
States last year was $41,996. The average price 9 years earlier was $29,000.
What was the annual increase in the selling price over this time period?
A. 3.89 percent
B. 4.20 percent
C. 4.56 percent
D. 5.01 percent
E. 5.40 percent
7. On your ninth birthday, you received $300 which you
invested at 4.5 percent interest, compounded annually. Your investment is now
worth $756. How old are you today?
A. age 29
B. age 30
C. age 31
D. age 32
E. age 33
9. Forty years ago, your mother invested $5,000. Today, that
investment is worth $430,065.11. What is the average annual rate of return she
earned on this investment?
A. 11.68 percent
B. 11.71 percent
C. 11.78 percent
D. 11.91 percent
E. 12.02 percent
12. You just received a $5,000 gift from your grandmother.
You have decided to save this money so that you can gift it to your
grandchildren 50 years from now. How much additional money will you have to
gift to your grandchildren if you can earn an average of 8.5 percent instead of
just 8 percent on your savings?
14. Suppose that the first comic book of a classic series was
sold in 1954. In 2000, the estimated price for this comic book in good
condition was about $340,000. This represented a return of 27 percent per year.
For this to be true, what was the original price of the comic book in
15. You would like to give your daughter $75,000 towards her
college education 17 years from now. How much money must you set aside today
for this purpose if you can earn 8 percent on your investments?