## Quiz

## Question 1 (1 point)

What would be the value of a savings account started with $690 , earning 5 percent (compounded annually) after 6 years?

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 1 options:Answer

## Question 2 (1 point)

Brenda Young desires to have $23600 saved after 18 years from now for her kid’s college fund. If she will earn 4 percent (compounded annually) on her money, what amount should she deposit 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 2 options:Answer

## Question 3 (1 point)

What amount would you have if you deposited $9700 a year for 13 years at 3 percent (compounded annually)?

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:Answer

## Question 4 (2 points)

What would be the net annual cost of the following checking account?

- Monthly fee : $12.60
- Processing fee: $0.58 per check
- Checks written: Average of 52 a month

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

Your Answer:Question 4 options:Answer

## Question 5 (1 point)

A few years ago, Michael Tucker purchased a home for $114000. Today the home is worth $158000. His remaining mortgage balance is $51000.

Assuming Michael can borrow up to 66 percent of the market value of his home, what is the maximum amount he can borrow?

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

Your Answer:Question 5 options:Answer

## Question 6 (1 point)

Kim Lee is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $1770 per month. Her employer deducts a total of $230 for taxes from her monthly pay. Kim also pays $90 on credit card debt each month. The loan she needs for chiropractic school will cost an additional $170 per month.

Calculate her debt payments-to-income ratio with college loan. Don’t forget to convert your answer to a percentage.

Make sure to include zeros and the period in your answer.

Round your answer to 2 decimal places. i.e. 20.12, 31.89, 10.02, 8.09, etc.

Do not include the “%” sign in your answer.

Your Answer:Question 6 options:Answer

## Question 7 (1 point)

Kim Lee is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $3110 per month. Her employer deducts a total of $230 for taxes from her monthly pay. Kim also pays $60 on credit card debt each month. The loan she needs for chiropractic school will cost an additional $110 per month.

Calculate her debt payments-to-income ratio without college loan. Remember to convert your answer to a percentage!

Make sure to include zeros and the period in your answer.

Round your answer to 2 decimal places. i.e. 13.55, 21.89, 8.21, 10.99, etc.

Do not include the “%” sign in your response.

Your Answer:Question 7 options:Answer

## Chapter 5 LO 5.4

## Question 8 (2 points)

Dorothy lacks cash to pay for a $1,260 dishwasher. She could buy it from the store on credit by making 12 monthly payments of $110. The total cost would then be $1,320. Instead, Dorothy decides to deposit $105 a month in the bank until she has saved enough money to pay cash for the dishwasher. One year later, she has saved $1,348.20—$1,260 in deposits plus interest. When she goes back to the store, she finds the dishwasher now costs $1,461.60. Its price has gone up 16 percent, the current rate of inflation.

From the financial standpoint, was postponing her purchase a good trade-off for Dorothy?

Question 8 options:

No

Yes

Submit Quiz*0 of 8 questions saved*

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