Question 1
Pace Co. borrowed $30,000 at a rate of8.5%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Pace have to pay in a 30-day month?
◦
$206.32
◦
$209.49
◦
$212.50
◦
$214.37
Question 2
Steve and Ed are cousins who were both born on the same day. Both turned26today. Their grandfather began putting $2,700per year into a trust fund for Steve on his 20th birthday, and he just made aseventhpayment into the fund. The grandfather (or his estate’s trustee) will continue with these $2,700payments until a51stand final payment is made on Steve’s70thbirthday. The grandfather set things up this way because he wants Steve to work, not to be a “trust fund baby,” but he also wants to ensure that Steve is provided for in his old age.
Until now, the grandfather has been disappointed with Ed, hence has not given him anything. However, they recently reconciled, and the grandfather decided to make an equivalent provision for Ed. He will make the first payment to a trust for Ed later today, and he has instructed his trustee to make additional equal annual payments each year until Ed turns70, when the45thand final payment will be made. If both trusts earn an annual return of9%, how much must the grandfather put into Ed’s trust today and each subsequent year to enable him to have the same retirement nest egg as Steve after the last payment is made on their70thbirthday?
◦
$4,026
◦
$4,312
◦
$4,567
◦
$4,713
Eastern gray squirrels are born naked with their eyes closed
The age-related increase in spirituality is different for two cohorts born seven years apart. The ...
Cretinism can result in a child born to a mother who was iodine deficient during early pregnancy
Fetal Alcohol Syndrome Children born with fetal alcohol syndrome often have facial abnormalities
Use the information in the above table to establish a Born-Haber cycle to determine the ...
Nancy borrowed $8000 from her grandfather to buy a car when she started college. The interest ...