Questions from Personal Finance

Q: Jen spends $10 per week on lottery tickets. If she

Jen spends $10 per week on lottery tickets. If she takes the same amount that she spends on lottery tickets and invests it each week for the next five years at 10%, compounded weekly, how much will sh...

Q: Winston will receive $100,000 on his 25th birthday.

Winston will receive $100,000 on his 25th birthday. Which time value of money concept would you use to compute the value of his future inheritance?

Q: Why do most people need access to financing at some point in

Why do most people need access to financing at some point in their life?

Q: Jim accepted a $3,000 loan from his Uncle Kurt

Jim accepted a $3,000 loan from his Uncle Kurt. Uncle Kurt agreed to defer payments for two years until after Jim graduates from college. How much will Jim owe in two years if his uncle charges him 6%...

Q: Elizabeth borrowed $1,000 from her credit union. She

Elizabeth borrowed $1,000 from her credit union. She has to make only one payment at the end of the loan. How much will she owe at the end of the year if the credit union charges her 5% interest?

Q: Kyle has $1,000 in cash received for high school

Kyle has $1,000 in cash received for high school graduation gifts from various relatives. He wants to invest it in a certificate of deposit (CD) so that he will have a down payment on a car when he gr...

Q: What is the time value of money? How is it related

What is the time value of money? How is it related to opportunity costs?

Q: Sandra wants to deposit $100 each year for her son.

Sandra wants to deposit $100 each year for her son. If she places it in a savings account that pays 5% per year, what amount will be in the account in 20 years?

Q: Luis wants to know how much he will have available to spend

Luis wants to know how much he will have available to spend on his trip to Belize in three years if he deposits $3,000 today at an annual interest rate of 9%.

Q: How much will you have in 36 months if you invest $

How much will you have in 36 months if you invest $75 a month at 10% annual interest?