Deck 6: Applications for Business

Question 1

Computer Inc. uses a markup of $1260 on a computer system for which they pay $2800. What is the markup rate on this system?

A) 5 $\%$
B) 45 $\%$
C) 450 $\%$
D) 34 $\%$
E) 23 $\%$

Answer 1

45 $\%$

Question 2

Bob's weight is currently 280 pounds. After a visit with his doctor, Bob is advised that based on his height and age, he should lose 5% of his weight over the next 12 months. How much weight does he need to lose?

A) 10 pounds
B) 21 pounds
C) 14 pounds
D) 13 pounds
E) 23 pounds

Answer 2

14 pounds

Question 3

Suppose your local supermarket offers the following products at the given prices. Find the more economical purchase. Corn, 8 ears for $2.29 or 4 ears for $2.19

A) 4 ears for $2.19
B) 8 ears for $2.29
C) No difference

Answer 3

8 ears for $2.29

Question 4

If Stella Swiss Lorraine cheese costs $5.99 per pound, find the total cost of 0.45 pound. Round to the nearest cent.

A) $2.43
B) $2.80
C) $6.44
D) $13.31
E) $2.70

Question 5

A local hospital implemented a program to attempt to reduce the number of unnecessary visits to the emergency room. Prior to the implementation, there was an average of 568 visits and after the program began, there was an average of 470 visits per month. What percent decrease does this represent? Round to the nearest tenth.

A) 20.8 $\%$
B) 19.3 $\%$
C) 17.3 $\%$
D) 16.3 $\%$
E) 14.7 $\%$

Question 6

Over a 10-year period, a grocery store chain increased its number of stores from 470 to 520. What was the percent increase in the number of stores? Round your answer to the nearest tenth of a percent.

A) 11.6 $\%$
B) 10.6 $\%$
C) 50.0 $\%$
D) 1.1 $\%$
E) 10.7 $\%$

Question 7

In 2009, the American Cancer Society estimated the number of new cancer cases in the United States would be 1,441,250. The 2010 prediction reflected a 4.9% increase in the estimate. Find the estimate of new cancer cases in 2010. Round to the nearest whole number.

A) 1,511,871 new cases
B) 1,632,021 new cases
C) 1,201,259 new cases
D) 1,512,431 new cases
E) 1,370,629 new cases

Question 8

Find the unit cost. Round to the nearest tenth of a cent. Doritos Cool Ranch chips, 12.5 ounces for $3.99

A) $3.671 per ounce
B) $0.419 per ounce
C) $3.133 per ounce
D) $0.319 per ounce
E) $0.681 per ounce

Question 9

An automobile manufacturer increased the average mileage on a car from 20 miles per gallon to 20.4 miles per gallon. Find the percent increase in mileage. Round your answer to the nearest tenth of a percent.

A) 2.1 $\%$
B) 0.4 $\%$
C) 0.2 $\%$
D) 2.0 $\%$
E) 3.0 $\%$

Question 10

A new computer system reduced the time for printing the payroll from 47 minutes to 27 minutes.
a) What is the amount of the decrease?
b) What percent decrease does this amount represent? Round your answer to the nearest percent.

A) a) 30 minutes; b) 85 $\%$
B) a) 20 minutes; b) 43 $\%$
C) a) 20 minutes; b) 85 $\%$
D) a) 30 minutes; b) 43 $\%$
E) a) 30 minutes; b) 4 $\%$

Question 11

Find the unit cost. Round to the nearest tenth of a cent. Adjustable wood clamps, 4 for $11.95

A) $7.950 per clamp
B) $0.335 per clamp
C) $2.988 per clamp
D) $3.088 per clamp
E) $8.962 per clamp

Question 12

Suppose your local supermarket offers the following products at the given prices. Find the more economical purchase. Sutter Home pasta sauce, 20 ounces for $2.99 or Muir Glen Organic pasta sauce, 27 ounces for $3.49

A) Muir Glen Organic
B) Sutter Home
C) No difference

Question 13

Kiwi fruit costs $0.23 each. Find the total cost of 8 kiwi. Round to the nearest cent.

A) $8.23
B) $1.94
C) $1.84
D) $34.78
E) $1.66

Question 14

Standard Brands paint that regularly sells for $10 per gallon is on sale for $8 per gallon.
a) What is the discount?
b) What is the discount rate?

A) a) $3; b) 20 $\%$
B) a) $2; b) 20 $\%$
C) a) $4; b) 30 $\%$
D) a) $2; b) 30 $\%$
E) a) $3; b) 30 $\%$

Question 15

Resner Builders' Hardware uses a markup rate of 36% for a table saw that costs $190. What is the selling price of the table saw?

A) $193.80
B) $68.40
C) $684.00
D) $258.40
E) $448.40

Question 16

Suppose your local supermarket offers the following products at the given prices. Find the more economical purchase. Kleenex tissues, 165 tissues for $1.09 or Puffs tissues, 250 tissues for $2.89

A) Kleenex tissues
B) Puffs tissues
C) No difference

Question 17

Find the unit cost. Round to the nearest tenth of a cent. Ibuprofen, 50 tablets for $3.39

A) $0.068 per tablet
B) $14.749 per tablet
C) $0.932 per tablet
D) $3.322 per tablet
E) $0.168 per tablet

Question 18

During 1 year, the number of people subscribing to direct broadcasting satellite systems increased 87%. If the number of subscribers at the beginning of the year was 2.5 million, how many subscribers were there at the end of the year? Round to the nearest hundredth of a million.

A) 2.17 million subscribers
B) 7.01 million subscribers
C) 2.34 million subscribers
D) 3.18 million subscribers
E) 4.68 million subscribers

Question 19

A medical device costs $16 to produce. If the retail store uses a 45% markup rate on the device, what is its selling price?

A) $8.8
B) $23.2
C) $25.2
D) $29.2
E) $22.2

Question 20

Seniors Medical Supply uses a markup rate of 55%. What is the selling price of a pair of aluminum crutches that costs $18?

A) $30.5
B) $25.8
C) $28.9
D) $8.1
E) $27.9

Question 21

A credit card company charges a customer 1.05% per month on the unpaid balance of charges on the credit card. What is the finance charge in a month when the customer has an unpaid balance of $150.84? Round your answer to the nearest cent.

A) $1.58
B) $0.16
C) $15.84
D) $149.26
E) $152.42

Question 22

A bank lent Gloria Masters $26,000 at an annual simple interest rate of 9.2%. The period of the loan was 9 months. Find the simple interest due on the loan.

A) $1794
B) $2392
C) $17,940
D) $179
E) $2826

Question 23

Tomatoes that regularly sell for $1 per pound are on sale for 30% off the regular price.
a) What is the discount?
b) What is the sale price?

A) a) $0.70 per pound; b) $0.30 per pound
B) a) $0.70 per pound; b) $0.70 per pound
C) a) $0.3 per pound; b) $0.7 per pound
D) a) $0.30 per pound; b) $0.18 per pound
E) a) $0.30 per pound; b) $0.70 per pound

Question 24

A $50 blood glucose monitoring set is on sale at Discount Drugs for 25% off the regular price. What is the discount?

A) $11.2
B) $14.6
C) $16.5
D) $12.5
E) $13.5

Question 25

A pharmaceutical company paid a dividend of $2.4 per share. After a reorganization, the company reduced the dividend by 34.5%.
a. What was the amount of the decrease?
b. What is the new dividend?

A) a.$2.03 b.$1.47
B) a.$0.83 b $1.57
C) a.$0.93 b.$1.37
D) a.$0.63 b.$1.77
E) a.$0.53 b.$1.67

Question 26

The simple interest due on a 30-day loan of $5900 is $84.00. Find the maturity value of the loan.

A) $5846.00
B) $6014.00
C) $5816.00
D) $5984.00
E) $568.93

Question 27

Cimarron Homes Inc. purchased a snow plow for $50,000 and financed the full amount for 8 years at an annual simple interest rate of 9%.
a. Find the interest due on the loan.
b. Find the monthly payment.
Round your answer to the nearest cent.

A) a) $36,000; b) $1075.00
B) a) $43,200; b) $895.83
C) a) $36,000; b) $895.83
D) a) $43,200; b) $1075.00
E) a) $895.83; b) $43,200

Question 28

A discount clothing store is selling a $70 sport jacket for $22 off the regular price. What is the discount rate?

A) $31 \frac { 3 } { 7 }$ %
B) $32 \frac { 3 } { 7 }$ %
C) $31 \frac { 30 } { 71 }$ %
D) $32 \frac { 30 } { 71 }$ %
E) $31 \frac { 10 } { 23 }$ %

Question 29

Grace Hospital purchased some imaging equipment for $225,000 and financed the full amount at 10 annual simple interest for 4 years. The simple interest on the loan is $78,000. Find the monthly payment.

A) $6302.50
B) $6332.50
C) $5652.50
D) $6412.50
E) $6312.50

Question 30

Rosalinda Johnson took out a 3-month, $12,000 loan. The annual simple interest rate on the loan was 8.5%. Find the monthly payment. Round your answer to the nearest cent.

A) $408.50
B) $1021.25
C) $3915.00
D) $4085.00
E) $391.50

Question 31

Action Machining Company purchased a robot-controlled lathe for $180,000 and financed the full amount at 12% annual simple interest for 3 years. The simple interest on the loan is $64,800. Find the monthly payment. Round your answer to the nearest cent.

A) $3200.00
B) $5000.00
C) $1800.00
D) $6800.00
E) $5440.00

Question 32

A department store employs 1300 people during the holidays. At the end of the holiday season, the store reduces the number of employees by 50%. What is the decrease in the number of employees?

A) 65 employees
B) 975 employees
C) 650 employees
D) 325 employees
E) 1250 employees

Question 33

Shannon O'Hara borrowed $10,000 for 60 days at an annual interest rate of 6.5%. Find the simple interest due on the loan. Assume 365 days in a year. Round your answer to the nearest hundredth.

A) $10.68
B) $650.00
C) $6500.00
D) $1068.49
E) $106.85

Question 34

A physician obtained a 10-month loan for $50,000 to buy office equipment at an annual simple interest rate of 8.95%. The simple interest on the loan is $5900. Identify a. the principal, b. the interest, c. the interest rate, and d. the time period of the loan.

A) a. $60,000; b. $6300; c. 10.55%; d. 11 months
B) a. $50,000; b. $5900; c. 8.95%; d. 10 months
C) a. $40,000; b. $6520; c. 7.75%; d. 8 months
D) a. $49,240; b. $5690; c. 11.25%; d. 9 months
E) a. $49,000; b. $6610; c. 10.95%; d. 12months

Question 35

Juanita's average monthly expense for gasoline was $80. After joining a car pool, she was able to reduce the expense by 15%.
a) What was the amount of the decrease?
b) What is Juanita's average monthly gasoline bill now?

A) a) $12.00; b) $34.00
B) a) $6.00; b) $68.00
C) a) $9.00; b) $51.00
D) a) $12.00; b) $68.00
E) a) $6.00; b) $34.00

Question 36

The simple interest due on a 2-month loan of $3300 is $560. What is the maturity value of the loan?

A) $3860
B) $2740
C) $3864
D) $1110
E) $3856

Question 37

One credit card company charges 1.3% per month on any unpaid balance, and a second company charges 1.75%. What is the difference between the finance charges that these two companies assess on an unpaid balance of $647.25? Round your answer to the nearest cent.

A) $2.33
B) $0.45
C) $3.05
D) $1.75
E) $2.91

Question 38

By installing energy-saving equipment, the Pala Rey Youth Camp reduced its normal $1000-per-month utility bill by $450. What percent decrease does this amount represent?

A) 5 $\%$
B) 68 $\%$
C) 23 $\%$
D) 55 $\%$
E) 45 $\%$

Question 39

Find the simple interest Jacob Zucker owes on a 6-year student loan of $7000 at an annual interest rate of 6%.

A) $420
B) $252
C) $2520
D) $25
E) $426

Question 40

A disc player that regularly sells for $400 is selling for 15% off the regular price. What is the discount?

A) $340.00
B) $6.00
C) $60.00
D) $385.00
E) $325.00

Question 41

To save for a child's education, the Petersens deposited $2300 into an account that pays 4% annual interest compounded daily. Find the amount of interest earned on this account over a 10-year period. Round your answer to the nearest cent.

A) $3551.15
B) $3431.12
C) $2959.29
D) $2300.25
E) $1131.12

Question 42

North Island Federal Credit Union pays 5% annual interest, compounded daily, on time savings deposits. Find the value of $950 deposited in this account after 1 year. Round your answer to the nearest cent.

A) $1198.44
B) $998.70
C) $951.56
D) $950.13
E) $798.96

Question 43

An investor obtained a loan of $110,000 to buy a car wash business. The monthly mortgage payment was based on 15 years at 9%. Find the monthly mortgage payment. Round your answer to the nearest dollar.

A) $1051
B) $1182
C) $1116
D) $1393
E) $990

Question 44

Tanya invested $1000 in a tax-sheltered annuity that pays 9% annual interest compounded monthly. Find the value of her investment after 5 years. Round your answer to the nearest cent.

A) $626.27
B) $1007.50
C) $939.41
D) $1565.68
E) $1038.07

Question 45

How much interest is earned in 10 years on $8000 deposited in an account that pays 7% interest, compounded monthly? Round your answer to the nearest cent.

A) $8046.67
B) $8077.29
C) $4846.37
D) $16,077.29
E) $8070.00

Question 46

Midtown Medical Supply has a warehouse with a 15-year mortgage of $120,000 at an annual interest rate of 6%.
a. Find the monthly mortgage payment.
b. During a month in which $300 of the monthly mortgage payment is principal, how much of the payment is interest?

A) a. $972.63 b. $962.63
B) a. $1112.63 b. $662.63
C) a. $1012.63 b. $712.63
D) a. $1158.63 b. $768.63
E) a. $1172.63 b. $735.63

Question 47

A medical equipment store was purchased for $725,000, and a down payment that was 40% of the purchase price was made. Find the down payment.

A) $291,020
B) $290,000
C) $287,990
D) $290,070
E) $289,990

Question 48

A vacation home has a mortgage of $190,000 for 25 years at an annual interest rate of 5%.
a) Find the monthly mortgage payment.
b) During a month when $433.18 of the monthly mortgage payment is principal, how much of the payment is interest?

A) a) $1666.08; b)$1232.90
B) a) $1110.72; b)$677.54
C) a) $2221.44; b)$1543.90
D) a) $1110.72; b)$86.64
E) a) $1666.08; b)$542.03

Question 49

Green River Lodge invests $80,000 in a trust account that pays 4% interest compounded quarterly.
a) What will be the value of the investment in 5 years?
b) How much interest will be earned in the 5 years?
Round your answer to the nearest cent.

A) a) $17,615.20; b) $97,615.20
B) a) $117,138.24; b) $37,138.24
C) a) $117,138.24; b) $17,615.20
D) a) $97,615.20; b) $17,615.20
E) a) $97,615.20; b) $37,138.24

Question 50

The annual property tax on a $150,000 home is $1980. Find the monthly property tax.

A) $198
B) $76
C) $1042
D) $165
E) $330

Question 51

A podiatrist is considering purchasing a new office building with a 25-year, $420,000 mortgage at 8% interest. The podiatrist can afford a monthly mortgage payment of $3200. Can the podiatrist afford the monthly mortgage payment on the new office building?

A) No
B) Yes

Question 52

Vivian Tom purchased a home for $200,000. Find the mortgage if the down payment Vivian made is 10% of the purchase price.

A) $90,000
B) $18,000
C) $180,000
D) $220,000
E) $20,000

Question 53

A loan of $150,000 is obtained to purchase a home. The loan origination fee is $1 \frac { 1 } { 2 }$ points. Find the amount of the loan origination fee.

A) $18
B) $225
C) $1125
D) $2250
E) $2700

Question 54

A nurse purchased a new home for $210,000. The bank requires a down payment of 45% of the purchase price. Find the mortgage.

A) $115,600
B) $115,500
C) $115,000
D) $116,500
E) $114,860

Question 55

A condominium at Mt. Baldy Ski Resort was purchased for $98,000, and a down payment of $16,750 was made. Find the mortgage.

A) $81,250
B) $114,750
C) $40,625
D) $57,375
E) $162,500

Question 56

Sal Travato invested $5000 in a corporate retirement account that pays 10% annual interest compounded semiannually. Find the value of his investment after 10 years. Round your answer to the nearest cent.

A) $5250.00
B) $8144.47
C) $13,266.49
D) $250.00
E) $10,613.19

Question 57

Ian Goldman purchased a new home for $193,000. The lender requires a down payment of 10% of the purchase price. Find the down payment.

A) $193,000
B) $154,400
C) $19,300
D) $1930
E) $185,280

Question 58

An investor obtained a loan of $180,000 to buy a car wash business. The monthly mortgage payment was based on 25 years at 5%. Find the monthly mortgage payment. Round your answer to the nearest dollar.

A) $1160
B) $1052
C) $966
D) $105
E) $950

Question 59

A cattle rancher purchased a home for $290,000. The bank requires a down payment of 15% of the purchase price.
a. Find the down payment.
b. Find the mortgage.

A) a) $43,500; b) $61,625
B) a) $32,625; b) $246,500
C) a) $10,875; b) $184,875
D) a) $43,500; b) $246,500
E) a) $32,625; b) $61,625

Question 60

To save for retirement, a couple deposited $4000 in an account that pays 7% interest compounded daily.
a) What will the value of the investment be in 5 years?
b) How much interest will be earned in the 5 years?
Round your answer to the nearest cent.

A) a) $5676.08; b) $1676.08
B) a) $6811.30; b) $1676.08
C) a) $5676.08; b) $2681.73
D) a) $6811.30; b) $2681.73
E) a) $7946.51; b) $1340.86

Question 61

A sedan was purchased for $20,000. A down payment of 8% of the purchase price was required. How much was the down payment?

A) $1600
B) $1920
C) $2500
D) $160
E) $16,000

Question 62

Your state charges a license fee of 1.4% on the purchase price of a car. How much is the license fee for a car that costs $14,498?

A) $14.00
B) $140.00
C) $20.30
D) $202.97
E) $162.38

Question 63

A real estate agent receives a 4% commission for selling a house. Find the commission the agent earned for selling a house for $156,000.

A) $6240
B) $3900
C) $400
D) $4368
E) $6864

Question 64

A & L Lumber Company purchased a delivery truck for $27,000. A sales tax of 4% of the purchase price was paid. Find the sales tax.

A) $25,920
B) $1080
C) $400
D) $108
E) $864

Question 65

Maria Hernandez purchased a home for $190,000 and made a down payment of $10,000. The balance was financed for 25 years at an annual interest rate of 6%. Find the monthly mortgage payment.

A) $1971.56
B) $1159.74
C) $1507.66
D) $1739.61
E) $2319.48

Question 66

Maria Hernandez purchased a home for $100,000 and made a down payment of $30,000. The balance was financed for 25 years at an annual interest rate of 8%. Find the monthly mortgage payment.

A) $916.27
B) $551.47
C) $540.27
D) $280.27
E) $690.27

Question 67

Keisha Brown receives an annual salary of $30,900 as an Italian language teacher. How much does Keisha receive each month?

A) $3348
B) $3090
C) $3883
D) $2575
E) $3605

Question 68

A family spent $1900 on gas, oil, and car insurance during a period in which the car was driven 15,000 miles. Find the cost per mile for gas, oil, and car insurance.

A) $0.13
B) $0.79
C) $2.28
D) $0.15
E) $0.16

Question 69

Susan Hernandez purchased a home for $200,000 and made a down payment of $20,000. The balance was financed for 20 years at an annual interest rate of 4%. Find the monthly mortgage payment.

A) $545.38
B) $763.53
C) $1090.76
D) $1636.15
E) $2181.53

Question 70

A car loan of $22,000 is financed for 3 years at an annual interest rate of 9%. Find the monthly car payment.

A) $1005.06
B) $709.88
C) $689.40
D) $547.47
E) $699.59

Question 71

A carpenter bought a utility van for $21,000 and made a down payment of 20% of the purchase price.
a) Find the down payment.
b) Find the amount financed.

A) a) $1050; b) $19,950
B) a) $3150; b) $16,800
C) a) $4200; b) $16,800
D) a) $4200; b) $4200
E) a) $3150; b) $17,850

Question 72

A camper is purchased for $29,000, and a down payment of $7000 is made. The balance is financed for 1 year at an annual interest rate of 6%. Find the monthly payment.

A) $975.05
B) $1893.46
C) $985.00
D) $1903.59
E) $1883.36

Question 73

A vacation home has a mortgage of $120,000 for 15 years at an annual interest rate of 6%. a. Find the monthly mortgage payment.
b. During a month when $384.8 of the monthly mortgage payment is principal, how much of the payment is interest?

A) a) $1012.63; b)$627.83
B) a) $1518.95; b)$1134.15
C) a) $2025.26; b)$1397.43
D) a) $1012.63; b)$941.75
E) a) $1518.95; b)$502.27

Question 74

The monthly mortgage payment on a home is $783.40, and the homeowner pays an annual property tax of $648. Find the total monthly payment for the mortgage and property tax.

A) $1088.62
B) $586.18
C) $418.70
D) $753.66
E) $837.40

Question 75

A car is purchased for $16,999, and a down payment of $999 is made. The balance is financed for 5 years at an annual interest rate of 5%. Find the monthly car payment.

A) $368.47
B) $309.32
C) $294.66
D) $301.94
E) $257.68

Question 76

Lewis works in a clothing store and earns $9.50 per hour. How much does he earn in a 30-hour work week?

A) $67
B) $285
C) $32
D) $342
E) $314

Question 77

A car loan of $15,000 is financed for 4 years at an annual interest rate of 10%. Find the monthly car payment.

A) $387.68
B) $380.44
C) $373.28
D) $484.01
E) $318.71

Question 78

An estimate of the cost of owning a compact car is $0.36 per mile. Using this estimate, find how much it costs to operate a car during a year in which the car is driven 11,000 miles.

A) $3564
B) $432
C) $30,556
D) $4356
E) $3960

Question 79

A couple considering a mortgage of $80,000 have a choice of loans. One loan is an 8% loan for 20 years, and the other loan is at 7% for 20 years. Find the amount of interest that the couple can save by choosing the 20-year loan.

A) $-5738.88
B) $-4738.88
C) $-3738.88
D) $-11738.88
E) $-10838.88

Question 80

An author bought a sports car for $30,000 and made a down payment of 15% of the purchase price. Find the amount financed.

A) $28,500
B) $34,500
C) $30,000
D) $25,500
E) $4500