Managing Money
You have the following college expenses: $6,500 for your tuition each semester, $150 in food each week, and $750 for rent each month. How much do you pay in total for college each year?
6500 * 2 = $13000
150 * 52 = $7800
750 * 12 = $9000
13000+7800+9000=
$29,800 per year
I deposited $340 into an account that pays 4% simple interest annually. How much money would I have in my account after 5 years?
A=P(1+rt)
=340(1+.04*5)
=$408
I took out a $34000 loan for a car 6 years ago. The loan from the bank had a 7.3% interest rate compounded annually. How much do I own on the loan now?
$51,889.23
I spend $7.50 eating out for lunch Monday-Friday (5 days per week). My rent on my house is $650 per month. How many months' worth of rent could I pay per year if I didn't eat out for lunch during the week?
7.50 * 5 = $37.50
37.50 * 52 = $1950
1950/650 = 3 months' rent
I deposited $756 into my bank account 3 years ago. I currently have $804 in my account. What is the simple interest rate on my bank account?
A=P(1+rt)
804=756(1+3r)
r=.021 OR 2.1%
I opened a retirement account 18 years ago that compounds interest quarterly at a rate of 3.2%. The account currently has $45350 in it. How much money did I put into it originally?
$25551.65
Suppose I need to have an emergency surgery that cost me $31,000. My deductible is $1000 and my copayment is $450. Insurance covers 85% of the remaining balance. How much money would my total bill be?
31000-(1000+450)=29550
.85(29550)=25117.50
25117.50+1000+450 =
$26,567.50
I deposited $445 into my bank account with a simple interest rate of 6.3% annually. How many years will I need to leave the money in my account for my account balance to reach $800?
A=P(1+rt)
800=445(1+.063t)
t=12.7 years
I opened an account with $1000 at First National Bank that pays 6.5% interest compounded annually. I opened another account with $1000 at Bank of America that pays 6.3% interest compounded monthly. How much interest would I have accrued from each account after 10 years?
First National:
$877.14
Bank of America:
$874.52
I have the following expenses: $140/week for groceries, $7/day for coffee, $55/week for gas, and $4800/semester for tuition.
I have the following income sources: $2100/semester for scholarships, $1100/month for part time job, and $20/week from grandparents.
What is my net income per month? Assume there are exactly 4 weeks per month.
140/week => 560/month
7/day => 49/week => 196/month
55/week => 220/month
4800/semester => 800/month
560+196+220+800=$1776 expenses per month
2100/semester => 350/month
1100/month
20/week => 80/month
350+1100+80=$1530 income per month
1530-1776 = -$246 net income per month
I currently have $4500 in my investment account that accrues simple interest at a rate of 4.2% annually. I opened my account 14 years ago. How much money did I initially deposit into the account?
A=P(1+rt)
4500=P(1+.042*14)
P=$2833.75
I took out a loan from a private lender for $4000. The lender charged me 14% interest compounded daily on the loan. After 6 months, how much money do I owe?
$4289.98
I opened a 401K retirement account through my employer. I plan to deposit $450 into the account every paycheck. I get paid once per month. The account pays interest at a rate of 3.75%. How much money will I have in my account after 2 years?
$11197.17
I drive 48 miles per week for work. My car gets 16 miles per gallon and gas costs $2.45 per gallon. Assuming there are 52 weeks in a year, how much money would I spend on gas in a year?
48 mi/wk \div 16 mi/gal = 3 gal/wk
3 gal/wk * 52 wk/yr = 156 gal/yr * $2.45/gal =
$382.20
Many years ago, I deposited $965 into an account that pays 10% simple interest. Currently, my account has $1435 in it. How many years ago did I deposit the $965?
A=P(1+rt)
1435=965(1+.1t)
t=4.87 years
I deposited $65000 into a retirement account that compounds interest annually. After 15 years, my account reached $100000. What was the account's interest rate?
2.9%
I opened a retirement account with Northwestern Mutual that pays 4.9% interest. I want my retirement account to have $1,000,000 in it by the time I retire at age 65. I am currently 23 years old. How much money will I need to deposit into the retirement account per month to ensure that I have $1,000,000 in it by age 65?
$600.71
THIS IS AN ALL OR NOTHING QUESTION. YOU MUST ANSWER ALL QUESTIONS CORRECTLY TO GET THE POINTS.
I decided to open a college savings account with a 3.9% interest rate for my 3-year-old child.
1) Using the savings plan formula, determine how much money I would need to deposit into the account per month so that the account would have $35000 in it by the time my child is 18.
2) Then, determine how much of the $35000 came from my monthly deposits and how much came from interest.
YOU SHOULD HAVE THREE ANSWERS IN YOUR RESPONSE.
1) $143.39
2) deposits = 143.39*12*15 = $25810.20 and interest = 35000-25810 = $9189.80