Question 1

$$\begin{array}{l}
\text { Find the compound interest. }\
\begin{array} { c | c | c | c } 
\text { Principal } & \text { Rate } & \text { Compounded } & \text { Time } \
\hline \$ 3000 & 19.5 \% & \text { Quarterly } & 3.5 \text { years }
\end{array}
\end{array}$$

Accepted Answer

The compound interest is calculated using the formula $ A = P \left(1 + \frac{r}{n}\right)^{nt} $. Here, $ P = 3000 $, $ r = 0.195 $, $ n = 4 $, and $ t = 3.5 $. The compound interest is $ A - P $, which results in $2841.56.

Question 2

Find the interest on the loan using the Banker's rule. P = $3100, r = 5%, t = 90 days

Accepted Answer

The answer of Find the interest on the loan using...

Question 3

A student loan is taken out for $9900 at 6%. The student graduates 2 years and 9 months after the loan is aquired. Payments are deferred for 3 months after graduation. Find the the monthly payment. Assume 30-day months and that the term of the loan is 10 years.

Accepted Answer

The answer of A student loan is taken out for...

Question 4

A house has a $ \$ 142,000.00 $ mortgage at $ 6.5 \% $. The monthly payments are $ \$ 897.44 $. Compute an amortization schedule for the first three months.
$\begin{array}{l|ll}
\text { Payment } & \
\text { Number } & \text { Interest } \text { Payment on Principle Balance of Loan } \
\hline 1 & & \
2 & & \
3 & &
\end{array}$

A)
$\begin{array}{l|rrr}
\begin{array}{c}
\text { Payment } \
\text { Number }
\end{array} & \text { Interest } & \text { Payment on Principle } & \text { Balance of Loan } \
\hline 1 & \$ 769.17 & \$ 128.27 & \$ 141,102.56 \
2 & \$ 764.31 & \$ 133.13 & \$ 140,205.12 \
3 & \$ 759.44 & \$ 138.00 & \$ 139,307.68
\end{array}$

B)
$\begin{array}{l|lrr}
\begin{array}{l}
\text { Payment } \
\text { Number }
\end{array} & \text { Interest } & \text { Payment on Principle } & \text { Balance of Loan } \
\hline 1 & \$ 769.17 & \$ 128.27 & \$ 141,871.73 \
2 & \$ 768.47 & \$ 128.97 & \$ 141,742.76 \
3 & \$ 767.77 & \$ 129.67 & \$ 141,613.09
\end{array}$

C)
$\begin{array}{l|lrr}
\begin{array}{l}
\text { Payment } \
\text { Number }
\end{array} & \text { Interest } & \text { Payment on Principle } & \text { Balance of Loan } \
\hline 1 & \$ 771.32 & \$ 126.12 & \$ 141,873.88 \
2 & \$ 770.60 & \$ 126.84 & \$ 141,744.89 \
3 & \$ 769.88 & \$ 127.56 & \$ 141,615.20
\end{array}$

D)
$\begin{array}{l|lrr}
\begin{array}{l}
\text { Payment } \
\text { Number }
\end{array} & \text { Interest } & \text { Payment on Principle } & \text { Balance of Loan } \
\hline 1 & \$ 769.17 & \$ 128.27 & \$ 141,102.56 \
2 & \$ 768.47 & \$ 128.97 & \$ 140,974.29 \
3 & \$ 767.77 & \$ 129.67 & \$ 140,845.32
\end{array}$

Accepted Answer

The answer of A house has a \( \$ 142,000.00...

Question 5

Express 10.7% as a decimal.

Accepted Answer

To convert a percentage to a decimal, divide by 100. So, 10.7% as a decimal is 10.7 ÷ 100 = 0.107.

Question 6

A Motel is converting its rooms into privately owned condominiums. The interest on a $4,900,000, 30-year construction loan is $100,000. What is the rate of interest? Does the rate seem unreasonable?

Accepted Answer

The answer of A Motel is converting its rooms into...

Question 7

A student loan is taken out for $7500 at 7%. The student graduates 3 years and 3 months after the loan is aquired. Payments are deferred for 3 months after graduation. Find the total amount of interest that will accrue before regular payments begin, using 30-day months.

Accepted Answer

The answer of A student loan is taken out for...

Question 8

What was the amount of the dividend per share that the company paid last year? 52 weeks
$\begin{array} { l l l l l l l l l } \text { HI } & \text { LO } & \text { STOCK } & \text { DIV } & \text { YLD\% } & \text { P/E } & \text { VOL } & \text { CLOSE } & \text { NET } \ & & & & & & ( 1,000 \mathrm {~s} ) & & \text { CHG } \ 67.30 & 40.86 & \text { ABC } & 1.02 & 2.8 & 5 & 2348 & 60.43 & - 1.73 \end{array}$

Accepted Answer

The dividend per share is given in the "DIV" column, which is $1.02.

Question 9

If you purchase 1442 shares of stock at the closing price and the broker's commission is $3.6 \%$ find the total cost of the purchase.
52 weeks
$\begin{array} { l l l l l l l l l } \text { HI } & \text { LO } & \text { STOCK } & \text { DIV } & \text { YLD\% } & \text { P/E } & \begin{array} { l } \text { VOL } \ ( 1,000 \mathrm {~s} ) \end{array} & \text { CLOSE } & \begin{array} { l } \text { NET } \ \text { CHG } \end{array} \ 68.14 & 43.34 & \text { ABC } & 1.44 & 2.0 & 6 & 4354 & 51.48 & - 1.45 \end{array}$,

Accepted Answer

The cost of the shares is $1442 \times 51.48 = 74,206.56$. The broker's commission is $3.6\%$ of this amount, which is $0.036 \times 74,206.56 = 2,700.03$. Therefore, the total cost is $74,206.56 + 2,700.03 = 76,906.59$.

Question 10

$$\begin{array}{l}
\text { Find the missing value. }\
\begin{array} { c | c | c | c } 
\text { Principal } & \text { Rate } & \text { Time } & \text { Simple Interest } \
\hline \$ 12,800 & 15.5 \% & & \$ 12,896.00
\end{array}
\end{array}$$

Accepted Answer

The answer of \[\begin{array}{l}
\text { Find the missing value. }\
\begin{array}...

Question 11

$$\begin{array}{l}
\text { If an investor had } 105 \text { shares of stock last year how much did the investor receive? }\
\begin{array} { l l l l l l l l l } 
52 \text { weeks } & & & & & & & \
\text { HI } & \text { LO } & \text { STOCK } & \text { DIV } & \text { YLD\% } & \text { P/E } & \begin{array} { l } 
\text { VOL } \
( 1,000 \mathrm {~s} )
\end{array} & \text { CLOSE } & \begin{array} { l } 
\text { NET } \
\text { CHG }
\end{array} \
61.30 & 45.44 & \text { ABC } & 1.52 & 1.7 & 7 & 3828 & 52.95 & - 0.07
\end{array}
\end{array}$$

Accepted Answer

The investor received $1.52 per share in dividends, so the total amount received is 105 * $1.52 = $159.60.

Question 12

Kelly bought a new SUV for $\$ 28,000$. She made a down payment of $\$ 14,500$ and has monthly payments of $\$ 264.15$ for 5 years. She is able to pay off her loan at the end of 36 months. Using the actuarial method, find the unearned interest and payoff amount.

Accepted Answer

The answer of Kelly bought a new SUV for \(\$...

Question 13

Dr. Sand borrowed some money to buy new furniture for her office. She paid $2173.50 simple interest on a 7-year loan at 13.5%. Find the principal.

Accepted Answer

The answer of Dr. Sand borrowed some money to buy...

Question 14

The closing price of a stock is $55.04 and the annual earnings per share is $2.51, find the P/E ratio.

Accepted Answer

P/E ratio = Closing price / Annual earnings per share= $55.04 / $2.51= 21.93

Question 15

A student loan is taken out for $8100 at 5.7%. Find the interest that accrues in a 30-day month.

Accepted Answer

The answer of A student loan is taken out for...

Question 16

$$\begin{array}{l}
\text { Find the maturity value. }\
\begin{array} { c | c | c | c } 
\text { Principal } & \text { Rate } & \text { Compounded } & \text { Time } \
\hline \$ 150 & 2.5 \% & \text { Semiannually } & 6 \text { years }
\end{array}
\end{array}$$

Accepted Answer

The maturity value is calculated using the compound interest formula: $ A = P \left(1 + \frac{r}{n}\right)^{nt} $. Here, $ P = 150 $, $ r = 0.025 $, $ n = 2 $, and $ t = 6 $. Plugging in these values gives $ A = 150 \left(1 + \frac{0.025}{2}\right)^{2 \times 6} \approx 174.11 $.

Question 17

An investor purchased 400 shares of stock for $30.43 per share and sold them later for $32.55 per share. The broker's commission was 3% of the purchase price and 3% of the selling price. Find the amount the investor made on the stock.

Accepted Answer

The investor made a profit of $32.55 - $30.43 = $2.12 per share. The total profit is $2.12 * 400 = $848. However, the investor had to pay a commission of 3% of the purchase price and 3% of the selling price. The commission on the purchase price is $30.43 * 0.03 * 400 = $36.52. The commission on the selling price is $32.55 * 0.03 * 400 = $39.08. The total commission is $36.52 + $39.08 = $75.60. Therefore, the investor made a net profit of $848 - $75.60 = $92.24.

Question 18

Express 355% as a decimal.

Accepted Answer

To convert a percentage to a decimal, divide by 100. So, 355% as a decimal is 355 ÷ 100 = 3.55.

Question 19

Kevin bought a new car for $\$ 22,000$. He made a down payment of $\$ 10,000$ and has monthly payments of $\$ 295.78$ for 4 years. He is able to pay off his loan at the end of 30 months. Using the actuarial method, find the unearned interest and payoff amount.

Accepted Answer

The answer of Kevin bought a new car for \(\$...

Question 20

Joan purchased a refrigerator for $700. She made a down payment of $65 and paid $71 a month for 10 months. Find the total installment price of the refrigerator.

Accepted Answer

The answer of Joan purchased a refrigerator for $700. She...

Quiz 8: Measurement

$\begin{array}{l}\text { Find the compound interest. }\\\begin{array} { c | c | c | c } \text { Principal } & \text { Rate } & \text { Compounded } & \text { Time } \\\hline \$ 3000 & 19.5 \% & \text { Quarterly } & 3.5 \text { years }\end{array}\end{array}$

Find the interest on the loan using the Banker's rule. P = $3100, r = 5%, t = 90 days

A student loan is taken out for $9900 at 6%. The student graduates 2 years and 9 months after the loan is aquired. Payments are deferred for 3 months after graduation. Find the the monthly payment. Assume 30-day months and that the term of the loan is 10 years.

Express 10.7% as a decimal.

A Motel is converting its rooms into privately owned condominiums. The interest on a $4,900,000, 30-year construction loan is $100,000. What is the rate of interest? Does the rate seem unreasonable?

A student loan is taken out for $7500 at 7%. The student graduates 3 years and 3 months after the loan is aquired. Payments are deferred for 3 months after graduation. Find the total amount of interest that will accrue before regular payments begin, using 30-day months.

$\begin{array}{l}\text { Find the missing value. }\\\begin{array} { c | c | c | c } \text { Principal } & \text { Rate } & \text { Time } & \text { Simple Interest } \\\hline \$ 12,800 & 15.5 \% & & \$ 12,896.00\end{array}\end{array}$

Dr. Sand borrowed some money to buy new furniture for her office. She paid $2173.50 simple interest on a 7-year loan at 13.5%. Find the principal.

The closing price of a stock is $55.04 and the annual earnings per share is $2.51, find the P/E ratio.

A student loan is taken out for $8100 at 5.7%. Find the interest that accrues in a 30-day month.

$\begin{array}{l}\text { Find the maturity value. }\\\begin{array} { c | c | c | c } \text { Principal } & \text { Rate } & \text { Compounded } & \text { Time } \\\hline \$ 150 & 2.5 \% & \text { Semiannually } & 6 \text { years }\end{array}\end{array}$

An investor purchased 400 shares of stock for $30.43 per share and sold them later for $32.55 per share. The broker's commission was 3% of the purchase price and 3% of the selling price. Find the amount the investor made on the stock.

Express 355% as a decimal.

Joan purchased a refrigerator for $700. She made a down payment of $65 and paid $71 a month for 10 months. Find the total installment price of the refrigerator.

Quiz 8: Measurement

Find the interest on the loan using the Banker's rule. P = $3100, r = 5%, t = 90 days

A student loan is taken out for $9900 at 6%. The student graduates 2 years and 9 months after the loan is aquired. Payments are deferred for 3 months after graduation. Find the the monthly payment. Assume 30-day months and that the term of the loan is 10 years.

Express 10.7% as a decimal.

A Motel is converting its rooms into privately owned condominiums. The interest on a $4,900,000, 30-year construction loan is $100,000. What is the rate of interest? Does the rate seem unreasonable?

A student loan is taken out for $7500 at 7%. The student graduates 3 years and 3 months after the loan is aquired. Payments are deferred for 3 months after graduation. Find the total amount of interest that will accrue before regular payments begin, using 30-day months.

Kelly bought a new SUV for $28,000\$ 28,000$28,000 . She made a down payment of $14,500\$ 14,500$14,500 and has monthly payments of $264.15\$ 264.15$264.15 for 5 years. She is able to pay off her loan at the end of 36 months. Using the actuarial method, find the unearned interest and payoff amount.

Dr. Sand borrowed some money to buy new furniture for her office. She paid $2173.50 simple interest on a 7-year loan at 13.5%. Find the principal.

The closing price of a stock is $55.04 and the annual earnings per share is $2.51, find the P/E ratio.

A student loan is taken out for $8100 at 5.7%. Find the interest that accrues in a 30-day month.

An investor purchased 400 shares of stock for $30.43 per share and sold them later for $32.55 per share. The broker's commission was 3% of the purchase price and 3% of the selling price. Find the amount the investor made on the stock.

Express 355% as a decimal.

Kevin bought a new car for $22,000\$ 22,000$22,000 . He made a down payment of $10,000\$ 10,000$10,000 and has monthly payments of $295.78\$ 295.78$295.78 for 4 years. He is able to pay off his loan at the end of 30 months. Using the actuarial method, find the unearned interest and payoff amount.

Joan purchased a refrigerator for $700. She made a down payment of $65 and paid $71 a month for 10 months. Find the total installment price of the refrigerator.