# Questions

I need an explanation for this Statistics question to help me study.

please answers these questions first that’s step 1 this assignment is two step I’m going to post the questions please finish that first and next I will put the last step here are the instructions:

## Quiz

## Question 1 (1 point)

*Saved*

What is the simple interest earned on a 1-year $300 deposit that earns 5% per year?

## Question 2 (1 point)

*Saved*

What is the rate of interest charged by a lender?

## Question 3 (1 point

What is the amount of money that would have to be deposited today to obtain a specified amount at a later dat

## Question 4

A college received a contribution to its endowment fund of $3 million. They can never touch the principal, but they can use the earnings. At an assumed interest rate of 8.5%, how much can the college earn each year?

## Question 5

If you deposit $1,200 into an account today that pays 6% interest compounded semiannually, after 25 years how much interest would you have earned?

## Question 6 (1 point)

The cost of a bacon cheeseburger was $.99. If the price of this sandwich increased at a 3% annual rate over the last five years, what would the price be today?

## Question 7 (1 point)

How many years will it take to triple a value given an effective annual interest rate of 20%? (Round to the closest year.)

## Question 8 (1 point)

How many years will it take to triple an amount if you have $6,000 invested at a rate of 15%? (Round up to obtain a whole number of years if necessary.)

## Question 9 (1 point)

A credit union advertises a nominal annual rate of 13.7% on a car loan. Interest is compounded monthly. What is the effective interest rate?

## Question 10 (1 point)

What is the present value of an amount given the following information?

Number of compounding years = 2

FV deposit = $200

Nominal Interest rate = 9%

Deposit periods in years = 21

## Question 11 (1 point)

The discount rate on this mixed stream of cash flows is 10%. What is the present value given this data?

Year 1 Cash flow stream = $7,000

Year 2 Cash flow stream = $3,000

Year 3 Cash flow stream = $6,000

## Question 12 (1 point)

What is the difference between simple and compound interest?

## Question 13 (1 point)

The bank loaned you $20,000 for a new car. The signed agreement states 60 monthly payments at $444.89. What is the effective rate on the car loan?

## Question 14 (1 point)

What is the future value of $200 deposited today at 8% compounded semiannually for three years?

## Question 15 (1 point)

The rate on a mixed stream of cash flows is 12%. $1,200 at the beginning of year 1, $2,200 at the beginning of year 2, and $3,300 at the beginning of year 3. What is the future value of all cash flows?