Question 23 (1 point) 20 of 30 saved How much will Bill Rodgers need to invest t

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Question 23 (1 point) 20 of 30 saved How much will Bill Rodgers need to invest today so that he may withdraw $7,000 each year for the next 9 years, assuming a rate of 11 percent compounded annually? (Use the tables in the handbook) Page 1: 1) $41,233 2) $41,322 3) $38,759 4) $38,597 5) None of the above B B EB Save 10 11 12 Question 24(1 point) 13 14 15 a a B Most companies calculate the finance charge on credit card accounts as a percentage of the: 16 17 18 1) Daily balance 2) Weekly balance 3) Average daily balance 41 Average weekly balance 5) None of the above a la8 19 20 21 a a B 22 23 24 Save 25 26 27 Question 25 (1 point 28 29 30 Jackie Flynn bought à new boat for $16.000 She put a $3,000 down payment on it The bank's loan was for 60 months Finance charges totaled $4,800. Her monthly Legend payment is 1) $34667 2) 5364.76 3) $29667 4) $26967 5) None of the above E Saved Response Unsaved Response O Into Item Save Question 21 Saved Question 26 (1 point

Explanation / Answer

Solution 23 - Calculation Money required Today to Invest

Cumulative Annuity @ 11% = [1/1+r]n

Here, r = 11% or 0.11

n = 9 years

Putting th value in formula = [1/1 + 0.11]9= 5.537 (B)

Solution 24 - Generally Companies calculate the finance charge on credit as a percentage of Average Daily Balance for better most appropriate Method and accuracy, Correctness, Transparency.

Average Daily Balance = Each day's balance for billing cycle/total Number of days in billing cycle.

Solution 25 - Calculation of monthly EMI

Particulars Per Year Withdrawal Required (A) $7000

Cumulative Annuity @ 11% = [1/1+r]n

Here, r = 11% or 0.11

n = 9 years

Putting th value in formula = [1/1 + 0.11]9= 5.537 (B)

5.537 Amount Required today to Invest (A*B) $38759

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