Question

11.) If you put $10,000 in the bank today, how much would you have after 4 years if you earned 3% compounded monthly?

	A.	$11,255.09
	B.	$10,940.51
	C.	$10,927.27
	D.	$11,273.28
	E.	None of the given choices.

12.) If you save $3,000 a year, and earn 6.5% interest annually, how much will you have in your account after 25 years?

		$101,478.92
		$188,146.13
		$79,875.00
		$176,663.04

13.) If your credit card company tells you that the interest rate is 19.0%, what is the effective rate if it is compounded daily?

	A.	19.0%
	B.	29.19%
	C.	20.92%
	D.	14.45%

True ore false:

14.)In general, companies want to have the lowest current ratio it can safely have.

15.)Investors use mutual funds to help diversify their investments and to keep costs down.

Answer 1

Dear Student, only one question is allowed at a time. I am answering the first question

11)

When interest is compounded monthly, interest rates are divided by 12 and time period is multiplied by 12

So, interest per month

= Annual interest / 12

= 3 / 12

= 0.25% per month

Time period

= Number of years x 12

= 4 x 12

= 48 months

So, Future value

= Present Value x (1 + r) ^ n

= $10,000 x (1 + 0.25 / 100) ^ 48

= $10,000 x 1.127328

= $11,273.28

So, as per above calculations, option D is the correct option