33. You have gathered this information on JJ Enterprises: 36. Your coin collecti

Question

33.

You have gathered this information on JJ Enterprises:

36.

Your coin collection contains 56 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2066, assuming they appreciate at an annual rate of 4.7 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  Future value

37.

You are paying an effective annual rate of 15.40 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account?

15.40 percent

14.41 percent

12.75 percent

17.65 percent

13.63 percent

41.

An investment offers a 15.5 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 6.5 percent. What does Bill believe the inflation rate will be over the next year?

10.99%

8.45%

9.72%

-7.79%

5.92%

$   

42.

Suppose the real rate is 4.5 percent and the inflation rate is 2 percent. What rate would you expect to see on a Treasury bill?

7.25%

5.93%

5.60%

7.58%

6.59%

You have gathered this information on JJ Enterprises:

Explanation / Answer

Ans 42:

1+Money Rate=(1+ real Rate)(1+Inflation rate)

1+Money Rate = (1+.045)(1+.02)

Money Rate= 6.59%

Ans:41

1+Money Rate= (1+ Real Rate)(1+ Inflation)

(1+.155) = (1+.065)(1+Inflation)

Inflation= 8.45%

Ans:37

17.65%

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