QUESTION 1 The city park director needs to decide which hiking trails to improve

Question

QUESTION 1

The city park director needs to decide which hiking trails to improve with the city's limited budget. All of the following are economic decision-making criteria EXCEPT:

the cost of the improvements this year

the future maintenance cost of the improvements

the type of vegetation that should be grown along the improved trails

the availability of grant money to pay for the improvements

QUESTION 2

You are trying to decide how many credits to take in the upcoming summer term. All of the following are economic decision-making criteria EXCEPT:

time until graduation if you take 1 or 2 courses during summer term

cost of summer courses including tuition, books, and transportation

amount of financial aid available

how much you enjoy your major

QUESTION 3

You borrow $10,000 and agree to repay it with interest at the end 6 years. Interest compounds at 4% per year. Which is the correct specification to determine how much you will be required to repay?

F = 10,000(1.06)4

F = 10,000(1.04)6

P = 10,000(1.06)-4

P = 10,000(1.04)-6

QUESTION 4

You deposit $1000 in a savings account that compounds at the rate of ½% per month. How much will this account be worth at the end of 12 months?

$1025

$1030

$1062

$1225

QUESTION 5

You put $1000 in an account that compounds at an interest rate of 5% per year. Approximately how long will it take until the account is worth $3000?

12 years

23 years

28 years

30 years

QUESTION 6

Based on this cash flow diagram, what is a correct specification for finding X?

X = 500(A/F,6%,7)

X = 500(P/F,6%,7)

X = 500(P/A,6%,7)

X = 500(A/P,6%,7)

QUESTION 7

Based on this cash flow diagram, what is the value of X?

$2383

$2791

$3577

$4197

QUESTION 8

You are buying a car and wish to pay no more than $450 per month in loan payments. If the annual interest rate is 9% (3/4% monthly) and your loan will last for 5 years (60 months), what is the most you will be able to borrow?

$1711

$3867

$21,678

$49,716

QUESTION 9

You want to borrow $220,000 for a 30-year mortgage to buy a house. If annual interest is 9%, what will your monthly payment be?

$1175

$1771

$1784

$1884

QUESTION 10

If you save $1000 a year for 4 years at a 7% annual rate then add no more money to your account but let the balance compound for 6 more years at 7%, what will your accumulated savings be at the end of Year 10?

$6664

$9376

$12,811

$18,251

QUESTION 11

A 25-year old architect contributes $4000 to an Individual Retirement Account. She plans to contribute this same amount each year for 40 years. If the interest rate is 6% over the 40 years, how much will she accumulate in her account?

$60,184

$160,000

$411,440

$619,048

QUESTION 12

If an architect wants to end up with $1,000,000 at the end of 40 years, how much must she save tax free each year if the interest rate is 6%?

$6460

$7000

$16,417

$25,000

a.

the cost of the improvements this year

b.

the future maintenance cost of the improvements

c.

the type of vegetation that should be grown along the improved trails

d.

the availability of grant money to pay for the improvements

Explanation / Answer

Ans 1 – the type of vegetation that should be grown along the improved trails

Ans 2 – how much you enjoy your major

Ans 3 – F = 10,000(1.04)6

Ans 4 – $1062

Ans 5 – 23 years

Ans 6 & 7 – Cannot see the diagram

Ans 8 – $21,678

Ans 9 – $1771

Ans 10 – $6664

Ans 11 – $619,048

Ans 12 – $6460

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.