A.1

A loan was made 2 years ago at 8% simple annual interest. The principal amount of the loan has just been repaid along with $600 of interest. The principal amount of the loan was closest to

1. $300

2. $3000

3. $4000

4. $5000

A.2

A $1000 loan was made at 10% simple annual interest. It will take how many years for the amount of the loan and interest to equal $1700?

1. 6 years

2. 7 years

3. 8 years

4. 9 years

A.3

A retirement fund earns 8% interest, compounded quarterly. If $400 is deposited every three months for 25 years, the amount in the fund at the end of 25 years is nearest to

1. $50,000

2. $75,000

3. $100,000

4. $125,000

A.4

For some interest rate i, and some number of interest periods n, the uniform series capital recovery factor is 0.2091 and the sinking fund factor is 0.1941. The interest rate i must be closest to

1. 1 %

2. 2%

3. 3%

4. 4%

A.5

The repair costs for some handheld equipment is estimated to be $120 the first year, increasing by $30 per year in subsequent years. The amount a person will need to deposit into a bank account paying 4% interest to provide for the repair costs for the next five years is nearest to

1. $500

2. $600

3. $700

4. $800

A.6

An "annuity" is defined as the

1. earned interest due at the end of each interest period

2. cost of producing a product or rendering a service

3. total annual overhead assigned...