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- Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?Jack borrowed $12,000 from a bank for 3 years at 15% interest annually. What is the total interest he paid in 3 years?Spencer has $80,000 in a savings account that earns 1.3% annually. How much interest will he earn in 9 years?
- Joe has $1,500 in credit card debt but pays it in full every month from cash flow. He also pays her mortgage from cash flow ($2,000 principal). For savings, Joe saves $50 per month in an interest-bearing savings account. Annual interest earned and reinvested is $100. How much will his net worth increase in the current year?Chris invested $2,000 in savings bonds. If the bonds earn 8.75% interest compounded semi-annually, how much total will Riley earn in 10 years? Monthly means how many times a year?Alex invested $10,500 in an account that pays 6 percent simple interest. How much money will he have at the end of four years?
- Roger just deposited $12,000 into his account at Market Place Bank. The bank will pay 3.2 percent interest, compounded annually, on this account. How much interest on interest will he earn over the next 11 years?Alice has $60,000 in a savings account that earns 8 % interest per year. The interest is not compounded. How much interest will she earn in 4 years?Four years ago, XZY deposited $2,920 in an account that has earned and will earn 8.70 percent per year in compound interest. If ABC deposits $3,540 in an account in 1 year from today that earns simple interest, then how much simple interest per year must ABC earn to have the same amount of money in 10 years from today as XZY will have in 10 years from today? Answer as an annual rate. 20.30% (plus or minus .05 percentage points) 10.00% (plus or minus .05 percentage points) 9.00% (plus or minus .05 percentage points) 18.36% (plus or minus .05 percentage points) None of the above is within .05 percentage points of the correct answer.
- Benjamin wants to have $12,000 in 15 years after investing in an account that earns 4.2% compounded quarterly. How much should he invest?Caitlyn has 50,000 in a bank which he invests at 8% compounded semi-annually. What semi-annual withdrawal must be made for 3 years?Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a compound interest of 4% per year on this account, how many years later will Jacob’s money reach 6500?