FIN 201 EXAM THREE WITH CORRECT ANSWERS | GRADED A+ | 2024

FIN 201 EXAM THREE WITH CORRECT ANSWERS | GRADED A+ | 2024 An ATM with a service fee of $4 is used by a person 100 times in a year. What would be the future value in 5 years (at a 5% rate) of the annual amount paid in ATM fees? ANS, Annual Fee: $4 x 100 = $400 FV = Annual fee x FV factor $400 x 5.526 = $2,210.40 A payday loan company charges 2% interest for a 4 week period. What would be the annual interest rate for that company? ANS, .020 x (52/4) = .260 or 26% What would be the value of a savings account started with $775, earning 6% (compounding annually) after 11 years? ANS, Using Exhibit 1-A $775 x 1.891 = $1,471 Looking for FV Brenda desires to have $12,000 8 years from now for her daughter's college fund. If she will earn 4% (compounded annually), what amount should she deposit now? ANS, Using Exhibit 1-C 12,000 x .731 = $8,772 Looking for present valu