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Personal Finance

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1.

An ATM with a service fee of $4 is used by a person 200 times in a year. What would be the future value in 7 years (use a 5 percent rate) of the annual amount paid in ATM fees? Use Exhibit 1-B. (Round time value factors to 3 decimal places and final answer to 2 decimal places.) |

Future value | $ |

Explanation: $6,513.60 = $800 × 8.142 (Exhibit 1-B) |

2.

If a person has ATM fees each month of $34 for four years, what would be the total cost of those banking fees? |

Total cost | $ |

Explanation: $34 × 12 months × 4 years = $1,632 |

3.

A payday loan company charges 3.2 percent interest for a four-week period. What would be the annual interest rate from that company? (Round your answer to 1 decimal place.) |

Annual interest rate | % |

4.

What would be the annual percentage yield for a savings account that earned $31 in interest on $500 over the past 365 days? (Round your answer to 1 decimal place.) | Annual percentage yield | % |

5. Janie has a joint account with her mother with a balance of $749,000. Based on $250,000 of Federal Deposit Insurance Corporation coverage, what amount of Janie’s savings would not be covered by deposit insurance? | Amount | $ |

6. A certificate of deposit often charges a penalty for withdrawing funds before the maturity date. If the penalty involves one months of interest, what would be the amount for early withdrawal on a $19,000, 5 percent CD? (Do not round intermediate calculations. Round your answer to 2 decimal places.) | Amount | $ |

8.

A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100) borrowed when an overdraft occurs. | a. | What amount of interest would the customer pay for a $340 overdraft? (Assume the interest is for the full amount borrowed for a whole...

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