Blog

(04.05 MC) © Farcaster 2009Creative Commons Attribution-Share Alike 3.0 Unported Which of the following statements best accounts for the data shown in the graph above? (4 points)

(02.04 MC) Principal Interest Year 1 Interest Year 10 Interest Year 20 Total Savings After 20 Years $12,000 in Simple Interest Account $12,000 x 5%= $600= $12,600 $12,000 x 5%= $6000= $18,000 $12,000 x 5%= $12000= $24,000 $12,000 + 20 years of simple interest= $24,000 $12,000 in Compound Interest Account $12,000 x 5%= $600= $12,600 ($12,000 + $6,615.94)$18,615.94 x 5%= $19546.74 ($12,000 + $18,323.40)$30,323.40 x 5%= $31,839.57 $12,000 + $20 years of compound interest$31,839.57 Juanita, who lives with her brother, has saved $12,000 for a down payment on her own house. Her financial planner suggests she look for a savings account that offers compound interest accounts. Why should Juanita take this advice? (4 points)

(02.06 MC) One bank offers a 4% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. Assuming no other differences between the loans, a customer should choose the fixed rate loan because (4 points)

(04.02 MC) Public Domain What can result from the line marked “Artificial Price”? (4 points)

(02.05 MC) Jared’s friends invite him to dinner at an expensive restaurant. Jared examines his budget and determines he cannot afford an expensive dinner, so he declines the invitation. Which of the following best represents the reason for Jared’s decision? (4 points)

(04.02 MC) How are start-up costs related to natural monopolies? (4 points)

(04.04 MC) If inflation begins to rise rapidly, which step is the Federal Reserve likely to take? (4 points)

(02.02 LC) The main benefit of a technical school certification is (4 points)

(02.04 MC) Principal Interest Year 1 Interest Year 10 Interest Year 20 Total Savings After 20 Years $12,000 in Simple Interest Account $12,000 x 5%= $600= $12,600 $12,000 x 5%= $6000= $18,000 $12,000 x 5%= $12000= $24,000 $12,000 + 20 years of simple interest= $24,000 $12,000 in Compound Interest Account $12,000 x 5%= $600= $12,600 ($12,000 + $6,615.94)$18,615.94 x 5%= $19546.74 ($12,000 + $18,323.40)$30,323.40 x 5%= $31,839.57 $12,000 + $20 years of compound interest$31,839.57 Abbie is in high school and saves money from her afterschool job to buy a car after she graduates from college. She wants a new car but knows it will cost more than $20,000. By her freshman year, she has saved $12,000. Which of the following would most help her have the most money by graduation? (4 points)

(04.03 LC) Which best describes the function of the Federal Reserve System? (4 points)