Deck 20: Interest and Taxes

Question 1

An automobile repair shop owner has a plant with equipment valued at $335,000.00. If the tax rate in the community is 35 mills, what is the tax bill?

A) $10,725
B) $11,725
C) $12,725
D) $13,725

Answer 1

$11,725

Question 2

The amount charged for the use of the principal is the ____________________.

Answer 2

interest

Question 3

How much interest will $200.00 earn in one year if the interest rate is 8 1/4%?

A) $15.50
B) $16.50
C) $17.50
D) $18.50

Answer 3

$16.50

Question 4

If a technician deposits $1,000.00 in a bank at 7.45%, how many years must the technician wait for the amount to double? Use the Rule of 72 and round to the nearest hundredth.

A) 7.24
B) 8.23
C) 9.66
D) 11.44

Question 5

What percent does a tax rate of $4.00 per hundred dollars equal?

A) 0.4
B) 2
C) 4
D) 40

Question 6

The amount borrowed is called the ____________________.

Question 7

What percent does a tax rate of 25 mills per dollar equal? That is, the tax is what percent of the value?

A) 2.5
B) 3.0
C) 25
D) 30

Question 8

How much interest will $35,000.00 earn in one year if the interest rate is 6 1/2%?

A) $2,275
B) $2,375
C) $2,425
D) $2,550

Question 9

The ____________________ is the amount of time of the loan.

Question 10

A car is valued at $4,550.00. If the personal property tax rate is $18.00 per thousand, how much is the owner taxed?

A) $78.90
B) $79.90
C) $80.90
D) $81.90