FINANCE 1
1. Mark weighed 140 pounds in high school. When he went to his 10 yr. reunion, he weighed 180
pounds. What is his growth rate?
a) 2%
b) 2.5%
c) 3%
d) 3.5%
Answer(b)
2. You just won the $30,000,000 lottery. You will receive 10 equal payments with the first payment
coming today. You can also choose the cash value. If the interest rate is 3%, then how much should the
cash value be?
a) $20,350,000
b) $22,590,000
c) $25,590,000
d) $26,350,000
Answer(d)
3. You currently have $100,000 in your retirement account and want to retire in 20 years with
$1,000,000. How much money must you deposit into your account each year if the interest rate is 8%?
a) $1,782
b) $11,667
c) $19,437
d) $32,037
Answer(b)
4. You retired with $1,000,000 and put it into an account that earned 5% interest. If you spend $70,000
per year, how much will you have left (or owe) 25 years from now?
a) owe $265,000
b) owe $50,000
c) $50,000 left
d) $265,000 left
1. Mark weighed 140 pounds in high school. When he went to his 10 yr. reunion, he weighed 180
pounds. What is his growth rate?
a) 2%
b) 2.5%
c) 3%
d) 3.5%
Answer(b)
2. You just won the $30,000,000 lottery. You will receive 10 equal payments with the first payment
coming today. You can also choose the cash value. If the interest rate is 3%, then how much should the
cash value be?
a) $20,350,000
b) $22,590,000
c) $25,590,000
d) $26,350,000
Answer(d)
3. You currently have $100,000 in your retirement account and want to retire in 20 years with
$1,000,000. How much money must you deposit into your account each year if the interest rate is 8%?
a) $1,782
b) $11,667
c) $19,437
d) $32,037
Answer(b)
4. You retired with $1,000,000 and put it into an account that earned 5% interest. If you spend $70,000
per year, how much will you have left (or owe) 25 years from now?
a) owe $265,000
b) owe $50,000
c) $50,000 left
d) $265,000 left
