/
/
/
31) Kathy deposited \$100 in a savings account that paid
Not my Question
Flag Content

# Question : 31) Kathy deposited \$100 in a savings account that paid : 1907281

31) Kathy deposited \$100 in a savings account that paid 8% interest, compounded annually. How much compound interest did she earn after 2 years?

A) \$15.64

B) \$16.64

C) \$8.08

D) \$8.00

E) \$8.64

32) What is the future value of \$16.54 after two years if these funds can be invested to earn 5.5%, compounded annually?

A) \$18.24

B) \$18.36

C) \$18.58

D) \$18.50

E) \$18.41

33) The future value of \$200 received today and deposited at 8 percent for three years is: (Round to the nearest whole dollar)

A) \$248

B) \$252

C) \$158

D) \$200

E) \$249

34) The rate of interest actually paid or earned, is the ________ interest rate

A) effective

B) nominal

C) discounted

D) continuous

35) At an inflation rate of 9 percent, the purchasing power of \$1 would be cut in half in 8.04 years. How long to the nearest year would it take the purchasing power of \$1 to be cut in half if the inflation rate were only 4 percent?

A) 12 years

B) 15 years

C) 18 years

D) 20 years

E) 23 years

36) The future value of \$100 received today and deposited at 6 percent for four years is: (Round to the nearest whole dollar)

A) \$126

B) \$79

C) \$124

D) \$116

E) \$106

37) Charlene owns stock in a company which has consistently paid a growing dividend over the last five years. The first year Charlene owned the stock, she received \$1.71 per share and in the fifth year, she received \$2.89 per share. What is the growth rate of the dividends over the last five years? (Round to the nearest whole number)

A) 7 percent

B) 14 percent

C) 12 percent

D) 5 percent

E) 11 percent

38) Julian was given a gold coin originally purchased for \$1 by his great grandfather 50 years ago. Today the coin is worth \$450. The rate of return realized on the sale of this coin is approximately equal to:

A) 7.5%

B) 13%

C) 50%

D) 10%

E) 15%

39) Young Sook owns stock in a company which has consistently paid a growing dividend over the last 10 years. The first year Young Sook owned the stock, she received \$4.50 per share and in the 10th year, she received \$4.92 per share. What is the growth rate of the dividends over last 10 years?

A) 5 percent

B) 4 percent

C) 2 percent

D) 1 percent

E) 3 percent

40) Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will be:

A) Higher

B) Lower

C) Stay the same

D) Cannot tell

E) Variable

## Solution 5 (1 Ratings )

Solved
Finance 3 Years Ago 227 Views