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4 votes
15 Points!! Please help and explain how to solve them!! I really want to understand it

Karl opens a savings account with $2500. He deposits $1500 every year into the account that has a 0.75% interest rate, compounded monthly. If he doesn’t withdraw any money, what will the account balance be in 10 years?
$15,581.51
$15,571.78
$18,276.16
$18,266.43
Sophia knows that she needs $42,000 for a 20% down payment on a house she can afford. She found an investment that earns 2.25% interest compounding monthly. How much should she put in the account now, rounded to the nearest dollar, to ensure she has the down payment amount in 5 years?
$11,052
$13,778
$37,070
$37,535
Max has just won some money on a game show! He has the option to take a lump sum payment of $500,000 now or get paid an annuity of $4,900 per month for the next 10 years. Assuming the growth rate of the economy is 2.9% compounding annually over the next 10 years, which is the better deal for Max and by how much?
A. Lump Sum: by $77,462.75
B. Lump Sum: by $4,145.41
C. Annuity: by $88,000.00
D. Annuity: by $4,145.41
I think that answer for this is B. but please explain.
Lucas purchased 90 shares of stock in a computer company at $87.92 per share and Peyton purchased 55 shares of stock in a different computer company for $72.03 per share. After holding the stock for two years, Lucas sold his for a total of $8,476.20, and Peyton sold hers for a total of $4,192.10. Which person had a higher ROI and by how much?
A. Lucas: 1.3% more
B. Peyton: 1.3% more
C. Peyton: 5.8% more
D. Lucas: 7.1% more
I think the answer for this is A but I still want to know how.

User FChiri
by
5.8k points

2 Answers

3 votes

Answer:

1. is $18,266.43 :)

Explanation:

User Veilig
by
6.0k points
5 votes
1) idk I got none of your options
2)p=42,000÷(1+0.0225÷12)^(12×5)
P=37,535.04
3)PVAO=4900*12[(1/0.029)-(1/0.029*(1+0.029)^10]=504145.41..compare with 500000
So the answer is D
4)lucas
90×87.92=7,912.8
((8,476.20−7,912.8)
÷7,912.8)×100=7.1%
Peton
55×72.03=3,961.65
((4,192.10−3,961.65)
÷3,961.65)×100=5.8%
So the answer is D
User Fady Kamal
by
6.0k points