POB 4.03 Review

How much interest is earned on a balance of $2,500 that is compounded semiannually at a 6% interest rate for an account maintained for one year?

Grayson inherited money from his grandmother and would like to buy a second home on the beach, with hopes to sell it later at a profit. This type of investment is:

Ramona, Tish's mother, has $10,000 to put into a savings plan. She doesn't plan to use the money for 5 years and wants the highest possible interest rate. What type of savings plan should Ramona put her money in?

In 2007, there was a sharp decline in the market and prices fell over a period of time. This describes what type of market?

Since Tish shops frequently, she likes having easy access to her money, which is being saved at a local bank. Which savings plan did she use?

What is the balance at the end of a year of an account with a beginning balance of $1,500 that is compounded quarterly at a 12% interest rate?

Christine buys and sells stocks and bonds at a set price for a commission for stockholders. What is her job?

Susie’s savings account is paying 4% simple interest annually. Susie has a principal amount of $1,000. How much interest will her account earn in 3 years?

The city government needs 1.2 million dollars to build a new medical facility. Which type of bond investment opportunity would help the city government obtain funding for the facility?

Jack is reviewing his investment portfolio to make sure it includes options that will allow him to access money immediately. Which type of evaluation factor of saving is he considering?