1. Which of the following can be excluded from a monthly credit card statement?
The size of the payment
The type of goods purchased
Finance charges, if any
The payment due date
The annual percentage rate
2. After graduating from college with a finance degree, you begin an ambitious plan to retire in 25 years. To build up your retirement fund, you will make quarterly payments into a mutual fund that on average will pay 12% APR compounded quarterly. To get you started, a relative gives you a graduation gift of $5,000. Once retired, you plan on moving your investment to a money market fund that will pay 6% APR with monthly compounding. As a young retiree, you believe you will live for 30 more years and will make monthly withdrawals of $10,000. To meet your retirement needs, what quarterly payment should you make?
a. $2,221.45
b. $2,588.27
c. $2,746.50
d. $2,904.73