1. One of the main purposes of an affirmative action program is:
to allow an employer to correct for underrepresentation
prevent reverse discrimination
maintain the status quo of a company
all of the other specific choices are correct
none of the other specific choices are correct
2. You are offered an add-on loan for $4,500 at 18% for 5 years.
What is the monthly payment?
What is the amount of interest?
What is the true interest rate cost of this loan?
If you could pay the same loan above at a compound rate:
What would the monthly payment be?
What would the amount of interest be?
3. Cathy and her twin sister Carley, both age 25, each believe they have the superior savings plan. Cathy saved $5,000 at the end of each year for ten years then let her money grow for 30 years. Carley on the other hand waited 10 years then began saving $5,000 at the end of each year for 30 years. They both earned 9% on their investment and are 65 years old today and ready to retire. Which of the following statements is correct?
Both strategies are equal as they have equal account balances at age 65.
Cathy's strategy is better because she has a greater account balance at age 65.
Carley's strategy is better because she has a greater account balance at age 65.
Neither strategy is better because Carley has a greater account balance but Cathy contributed less.