22. Homer Simpson invests S1,500 a year at the beginning of each year for a tota

Question

22. Homer Simpson invests S1,500 a year at the beginning of each year for a total of 20 years at 7.5 percent annual rate. How much money will Homer have 20 years from now? a. S60,529 b. $64,957 C. $66,457 d. $69,829 e $71,329 23. You've borrowed $300,000 to buy a house with a 15-year, 9% mortgage with monthly payments. If every month you pay an additional $500 toward your mortgage, how long will it take to pay off your mortgage? a. 125 months b. 130 months c. 135 months d. 140 months e. 143 months f. 145 months g. 150 months 24. One of the recent Overheard articles in the Heard on the Street section focused on: How the recent rain and bad road conditions in the Chicago area have caused a shortage of paper towels in southern Illinois. a. b. How recent rain conditions on Lake Michigan are impacting the availability of smelt a small fish caught primarily in the winter that is one of the primary components of cat food Harley-Davidson announced that it was hiring people to work on its electric bike, and even though it will be electric, it will have the same sound as the originals. c. d. The cancelation of all of its orders of Boeing aircraft by the Saudi government. e. Tesla deciding to split its stock. f. Kmart renaming its "plus size" women's clothing as "fabulously sized." g. The challenge to wine makers by new, very inexpensive, and extremely good wines from the east coast of Africa. h. A stock trader from England trying to bribe one of the assistants to Jeffrey Lacker, the President of the Federal Reserve Bank of Richmond in order to gain information of the possible Fed rate hike ahead of the fact.

Explanation / Answer

(22) Homer Simpson's beginning of year investments = $ 1500 and Annual Interest Rate = 7.5 % per annum

Investment Horizon = 20 years.

Value of Simpson's Investments 20 years from now ( at the end of Year 20) = 1500 x (1.075)^(20) + 1500 x (1.075)^(19) + ......+ 1500 x (1.075) = $ 69828.8 ~ $ 69829

Hence, the correct option is (d).

NOTE: Please raise separate queries for solutions to the remaining unrelated questions as one query on the platform can be used only for one question (with multiple sub-parts though).

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

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