Although appealing to more refined tastes

Q1

First City Bank pays 8 percent simple interest on its savings account balances,

whereas Second City Bank pays 8 percent interest compounded annually.

If you made a $65,000 deposit in each bank, how much more money

would you earn from your Second City Bank account at the end of 8 years?

(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Difference in accounts

$

Q2

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Q3

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Q4

Assume that in January 2013, the average house price in a

particular area was $284,400. In January 2001, the average price was $201,300.

What was the annual increase in selling price?

(Do not round intermediate calculations. Enter your answer as a percent rounded answer

to 2 decimal places, e.g., 32.16.)

Annual increase in selling price

%

Q5

Your coin collection contains 55 1952 silver dollars. If your

grandparents purchased them for their face value when they were new, how much

will your collection be worth when you retire in 2065, assuming they appreciate at an

annual rate of 4.6 percent? (Do not round intermediate calculations and round your

final answer to 2 decimal places, e.g., 32.16.)

Future value

$

Q6

Although appealing to more refined tastes, art as a collectible has not always performed so profitably.

During 2003, an auction house sold a sculpture at auction for a price of $10,381,500.

Unfortunately for the previous owner, he had purchased it in 1998 at a price of $12,517,500.

What was his annual rate of return on this sculpture?

(Negative amount should be indicated by a minus sign. Do not round intermediate calculations.

Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Annual rate of return

%

Q7

You are scheduled to receive $16,000 in two years.

When you receive it, you will invest it for eight more years at 9.25 percent per year.

How much will you have in ten years?

(Do not round intermediate calculations.

Round your answer to 2 decimal places, e.g., 32.16.)

Amount

$