AQR Unit 6 Exam

A deposit of $5000 is made in an account that pays 5% interest, compounded monthly. After 50 years, how much money is in the account?

• Between $10,000 and $15,000

• Between $40,000 and $50,000

• Between $60,000 and $70,000

• More than $70,000

Courtney has a balance on her credit card of $8,500 that charges her 23% interest compounded monthly. If she pays $350 a month, it will take Courtney (a)   to pay the card off.

• About 33 months
• About 33 years
• About 20 months
• About 168 months

If a bank requires a 10% down payment on a $19,000 car, (a)   will be financed.

• $1,900
• $16,000
• $17,100
• $20,900

Marley has a credit card with an APR of 20% and a current balance of $11,347.28. If Marley stops using her credit card and makes a $377 payment on her card each month, how many months will it take for her to pay off the card?

• 30

• 33

• 36

• 42

Erica makes $15.50 an hour working 8 hours a day and 5 days per week. Calculate her annual gross income if there are 52 weeks in a year.

• $36,448

• $620

• $32,240

• $7,440

What is Jordan's net monthly income if she is paid an annual salary of $60,000 and 22.65% is deducted for taxes?

• $3875

• $5000

• $1132

• $2855

Sarah received $75 in interest on her term deposit of $450 over 3 years. What was the simple interest rate per year? FV = P(1 + it)

• 5.6%

• 56%

• 22%

• 11.2%

For the function FV = 3500(1.043)^t, what is the initial investment?

• $3,500

• 1.043

• 43%

• $5,332.26

At 8 percent compounded annually, how long will it take $750 to double?

• 6.5 years

• 48 months

• 9 years

• 12 years

You wish to borrow $2,000 which will be repaid in 12 monthly installments of $189.12. The annual interest rate is:

• 24 percent

• 8 percent

• 18 percent

• 12 percent