Compound Interest — Unit test Answers

Cynthia’s broker charges her a commission of $88 for every $1000 of stock bought or sold. Cynthia bought 2,000 shares of Ombor Medical Supplies at $35.49 apiece. As the price rose and fell, she sold off part of her holdings. When the price rose to $48.57, she sold 600 shares. The price fell somewhat to $46.10, so she sold 1,150 of her shares. When the price climbed to $53.46, she sold off the remainder of her holdings. How much profit did Cynthia make in total?

Cost-push inflation occurs when

Yuri wants to pay for his new chair using a check. What must he consider before using that method of payment?

What are possible advantages and disadvantages of using automatic withdrawal to pay bills? Check all that apply.

Jodi is retiring at the age of 65. When she retires, she estimates that she will need a monthly income for 25 years. If Jodi starts with $328,133.32 in an account that pays 6.2% interest compounded monthly, approximately what monthly income will she be able to draw?

Nicole is considering opening a Roth Individual Retirement Account. If she invests into the Roth IRA, determine the amount in the account if she makes annual payments of $4,291 into an account paying 2.23% interest compounded annually for 30 years.

Heidi contributes 11% of her monthly salary towards her 401(k) and her employer matches her contribution up to 6% of her salary. If the interest rate of her 401(k) is 6.25% compounded monthly and her monthly salary is $3,250, determine the amount in her account after 15 years. Round to the nearest cent.

Iris has an investment worth $8,813. She made her only deposit in it seven years ago. Given that the investment yields 3.7% simple interest annually, how big was the initial deposit?