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2016-FRR Practice Questions
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NEW QUESTION: 1
Andrea Palmer has saved 25,000 in her bank account. She is thinking of moving it to a money market account that pays a fixed 3.75% stated annual rate, compounded monthly. If Andrea continues to save 600 per month for the next three years, every month-end from her salary, how much money will she have after three years?
A. 50,796
B. 46,917
C. 50,912
Answer: A
Explanation:
Andrea has 25,000 today and will save 600 monthly at year-end. The latter is an annuity.
The future value of both can be computed in one step on a financial calculator. Interest = 3.75/12 =
0 .3125%, since compounding is monthly. In the BGN mode: PV = 25,000; N = 36; I/Y = 0.3125; PMT =
6 00; CPT FV = 50,796.
NEW QUESTION: 2
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2016-FRR Exam Info
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2016-FRR Exam Topics
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2016-FRR Offcial Page
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