Question 1

Find (a) the discount, (b) the amount of money received, and (c) the true interest rate. P = $1750, r = 4.5%, t = 9 years A) (a) $\$ 708.75$
(b) $\$ 1041.25$
(c) $7.56 \%$

B) (a) $\$ 850.50$
(b) $\$ 1249.50$
(c) $9.08 \%$

C) (a) $\$ 779.63$
(b) $\$ 1145.38$
(c) $8.32 \%$

D) (a) $\$ 637.88$
(b) $\$ 937.13$
(c) $6.81 \%$

Accepted Answer

The answer of Find (a) the discount, (b) the amount...

Question 2

If the closing price of a stock is $27.11 and the P/E ratio is 53, find the annual earning per share.

Accepted Answer

The answer of If the closing price of a stock...

Question 3

Aaron had an unpaid balance of $1427.57 on his credit card statement at the beginning of August. He made a payment of $245.00 during the month, and made purchases of $205.97. If the interest rate on Aaron's credit card was 19.5% per month on the unpaid balance, find his finance charge and the new balance on September 1.

Accepted Answer

The answer of Aaron had an unpaid balance of $1427.57...

Question 4

A house sells for $\$ 95,000$ and a $30 \%$ down payment is made. A 30-year mortgage at $6.5 \%$ was obtained. Find the monthly payment and the total interest paid.
Monthly Payment per $\$ 1000$ of Mortgage
(Includes Principle and Interest)

$\quad $ $\quad $ $\quad $ $\quad $$\text { Number of years }$
$\begin{array}{c|c|c}
\text { Rate }(\%) & 15 & 30 \
\hline 6.5 & \$ 8.71 & \$ 6.32 \
7 & \$ 8.99 & \$ 6.65 \
7.5 & \$ 9.28 & \$ 6.99 \
8 & \$ 9.56 & \$ 7.34
\end{array}$

Accepted Answer

The answer of A house sells for $\$ 95,000$ and...

Question 5

A coat was reduced from $250 to $200. Find the percent of the reduction in price.

Accepted Answer

The reduction in price is $50 ($250 - $200). The percent reduction is calculated as ($50 / $250) * 100% = 20%.

Question 6

A credit card statement showed these transactions during October.
$\begin{array} { l l r } \text { October 1 } & \text { Previous balance } & \$ 103.93 \ \text { October 12 } & \text { Purchases } & \$ 86.42 \ \text { October 29 } & \text { Payment } & \$ 170.00 \end{array}$
The credit card has an interest rate of $6 \%$ on the average daily balance. Find the average daily balance, the finance charge for the month, and the new balance on November 1 . [Hint: Remember that October has 31 days.]

Accepted Answer

The answer of A credit card statement showed these transactions...

Question 7

$$\begin{array}{l}
\text { What was the closing price of the stock the day before yesterday? }\
\begin{array} { l l l l l l l l l } 
52 \text { weeks } & & & & & & & \
\text { HI } & \text { LO } & \text { STOCK } & \text { DIV } & \text { YLD\% } & \text { P/E } & \begin{array} { l } 
\text { VOL } \
( 1,000 \mathrm {~s} )
\end{array} & \text { CLOSE } & \text { NET } \
& & & & & & \begin{array} { l } 
\text { NEG } \
\text { CHG }
\end{array} \
61.32 & 46.67 & \text { ABC } & 1.60 & 2.9 & 6 & 3010 & 51.53 & 0.59
\end{array}
\end{array}$$

Accepted Answer

The closing price of the stock the day before yesterday can be calculated by subtracting the net change from the current closing price: $51.53 - $0.59 = $50.94.

Question 8

Express 0.462 as a percent.

Accepted Answer

To convert a decimal to a percent, multiply by 100. Thus, 0.462 * 100 = 46.2%.

Question 9

Find the future value of the loan. P = $8800, r = 7.5%, t = 11 months

Accepted Answer

The answer of Find the future value of the loan....

Question 10

Amanda's credit card statement showed these transactions during December.
$\begin{array} { l l r } \text { Dec 1 } & \text { Previous balance } & \$ 128.11 \ \text { Dec 12 } & \text { Purchases } & \$ 254.78 \ \text { Dec 18 } & \text { Purchases } & \$ 76.13 \ \text { Dec 27 } & \text { Payment } & \$ 75.00 \end{array}$
The interest rate is $12 \%$ per month on the average daily balance. Find the average daily balance, the finance charge for the month, and the new balance on January 1. [Hint: Remember that December has 31 days.]

Accepted Answer

The average daily balance is calculated by considering the balance on each day of the month. The finance charge is 12% of the average daily balance. The new balance is the previous balance plus purchases, minus payments, plus the finance charge.

Question 11

$9600 is invested for 3 months in a savings account with a rate of 9.5% simple interest per year. Find the interest.

Accepted Answer

The interest is calculated using the formula: Interest = Principal × Rate × Time. Here, the principal is $9600, the annual rate is 9.5% (or 0.095), and the time is 3/12 years. So, Interest = $9600 × 0.095 × (3/12) = $228.00.

Question 12

Find the effective rate when the stated rate is 20% and the interest is compounded semiannually.

Accepted Answer

The effective rate is given by the formula (1 + (stated rate / number of compounding periods))^number of compounding periods - 1. In this case, the stated rate is 20% and the interest is compounded semiannually, so the number of compounding periods is 2. Plugging these values into the formula, we get (1 + (0.20 / 2))^2 - 1 = 0.21, or 21%.

Question 13

An investor purchased 200 shares of stock at $54.54 per share. She later sold it at $51.67 . The broker's commission on the purchase was 3% and 1% on the sale. Find the amount of money the investor lost on the stock.

Accepted Answer

The investor bought the shares for $54.54 each, totaling $10,908. The 3% commission on purchase is $327.24. The total cost is $11,235.24. She sold the shares for $51.67 each, totaling $10,334. The 1% commission on sale is $103.34. The total received is $10,230.66. The loss is $11,235.24 - $10,230.66 = $1,004.58.

Question 14

Suppose you plan to work right after you graduate, but still save money for graduate school. You decide to save $35,000 before starting, and find a weekly annuity that pays 6% interest for 4 years. How much will you need to pay each week?

Accepted Answer

To find the weekly payment for an annuity, we use the formula for the future value of an annuity. Given the future value ($35,000), interest rate (6% annually, or approximately 0.1154% weekly), and the number of periods (4 years * 52 weeks = 208 weeks), we solve for the weekly payment. The correct calculation results in approximately $148.98.

Question 15

Sheila borrowed $1,000.00 for 1 year. Her monthly payments are $89.60. If she decides to pay the loan off after 4 months, find the amount of interest that she will save. (Use the rule of 78s.)

Accepted Answer

The rule of 78s is used to calculate interest savings when a loan is paid off early. The sum of the digits for a 12-month loan is 78. The interest for the first 4 months is calculated as (12+11+10+9)/78 of the total interest. The remaining interest is saved. The total interest paid over 12 months is $75.20 (12 payments of $89.60 minus the principal of $1,000). The interest saved by paying off after 4 months is $75.20 - (42/78 * $75.20) = $34.71.

Question 16

$$\begin{array}{l}
\text { Find the missing value. }\
\begin{array} { c | c | c | c } 
\text { Principal } & \text { Rate } & \text { Time } & \text { Simple Interest } \
\hline \$ 14,800 & 14 \% & 18 \text { months } &
\end{array}
\end{array}$$

Accepted Answer

The formula for simple interest is $ I = P \times R \times T $. Here, $ P = 14800 $, $ R = 14\% = 0.14 $, and $ T = \frac{18}{12} = 1.5 $ years. Calculating gives $ I = 14800 \times 0.14 \times 1.5 = 3108 $.

Question 17

Samir purchased a car for $\$ 40,000$. He made a down payment of $\$ 27,000$ and paid $\$ 410.37$ monthly for 3 years. Find the APR from the table below.

$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Annual Percentage Rate }$
$\begin{array}{ccccccc} 
& 6.0 \% & 6.5 \% & 7.0 \% & 7.5 \% & 8.0 \% & 8.5 \% \
\begin{array}{c}
\text { Number of } \
\text { Payments }
\end{array} & & & & & & \
36 & \$ 9.52 & \$ 10.34 & \$ 11.16 & \$ 11.98 & \$ 12.81 & \$ 13.64
\end{array}$
$\text { (Finance charge per } \$ 100 \text { of amount financed) }$

$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Annual Percentage Rate }$ 
$\begin{array}{cccccccc}
\begin{array}{c}
\text { Number of } \
\text { Payments }
\end{array} & 9.0 \% & 9.5 \% & 10.0 \% & 10.5 \% & 11.0 \% & 11.5 \% & 12.0 \% \
36 & \$ 14.48 & \$ 15.32 & \$ 16.16 & \$ 17.01 & \$ 17.86 & \$ 18.71 & \$ 19.57
\end{array}$

$\text { (Finance charge per } \$ 100 \text { of amount financed) }$

Accepted Answer

The answer of Samir purchased a car for $\$ 40,000$....

Question 18

In order to help pay for college, the grandparents of a child invest $2650 in a bond that pays 12% interest compounded semiannually. How much money will there be in 2.5 years?

Accepted Answer

The answer of In order to help pay for college,...

Question 19

If the closing price of a stock is $43.87 and the annual earnings per share is $0.93, find the P/E ratio.

Accepted Answer

The answer of If the closing price of a stock...

Question 20

Express $8 \frac { 1 } { 5 } \%$ as a mixed number or a fraction.
A) $\frac { 41 } { 500 }$

B) $\frac { 41 } { 10 }$

C) $\frac { 41 } { 100 }$

D) $\frac { 41 } { 50 }$

Accepted Answer

The answer of Express \(8 \frac { 1 } {...

Quiz 8: Measurement

If the closing price of a stock is $27.11 and the P/E ratio is 53, find the annual earning per share.

A coat was reduced from $250 to $200. Find the percent of the reduction in price.

Express 0.462 as a percent.

Find the future value of the loan. P = $8800, r = 7.5%, t = 11 months

$9600 is invested for 3 months in a savings account with a rate of 9.5% simple interest per year. Find the interest.

Find the effective rate when the stated rate is 20% and the interest is compounded semiannually.

An investor purchased 200 shares of stock at $54.54 per share. She later sold it at $51.67 . The broker's commission on the purchase was 3% and 1% on the sale. Find the amount of money the investor lost on the stock.

Suppose you plan to work right after you graduate, but still save money for graduate school. You decide to save $35,000 before starting, and find a weekly annuity that pays 6% interest for 4 years. How much will you need to pay each week?

Sheila borrowed $1,000.00 for 1 year. Her monthly payments are $89.60. If she decides to pay the loan off after 4 months, find the amount of interest that she will save. (Use the rule of 78s.)

$\begin{array}{l}\text { Find the missing value. }\\\begin{array} { c | c | c | c } \text { Principal } & \text { Rate } & \text { Time } & \text { Simple Interest } \\\hline \$ 14,800 & 14 \% & 18 \text { months } &\end{array}\end{array}$

In order to help pay for college, the grandparents of a child invest $2650 in a bond that pays 12% interest compounded semiannually. How much money will there be in 2.5 years?

If the closing price of a stock is $43.87 and the annual earnings per share is $0.93, find the P/E ratio.

Express $8 \frac { 1 } { 5 } \%$ as a mixed number or a fraction. A) $\frac { 41 } { 500 }$ B) $\frac { 41 } { 10 }$ C) $\frac { 41 } { 100 }$ D) $\frac { 41 } { 50 }$

Quiz 8: Measurement

If the closing price of a stock is $27.11 and the P/E ratio is 53, find the annual earning per share.

A coat was reduced from $250 to $200. Find the percent of the reduction in price.

Express 0.462 as a percent.

Find the future value of the loan. P = $8800, r = 7.5%, t = 11 months

$9600 is invested for 3 months in a savings account with a rate of 9.5% simple interest per year. Find the interest.

Find the effective rate when the stated rate is 20% and the interest is compounded semiannually.

An investor purchased 200 shares of stock at $54.54 per share. She later sold it at $51.67 . The broker's commission on the purchase was 3% and 1% on the sale. Find the amount of money the investor lost on the stock.

Suppose you plan to work right after you graduate, but still save money for graduate school. You decide to save $35,000 before starting, and find a weekly annuity that pays 6% interest for 4 years. How much will you need to pay each week?

Sheila borrowed $1,000.00 for 1 year. Her monthly payments are $89.60. If she decides to pay the loan off after 4 months, find the amount of interest that she will save. (Use the rule of 78s.)

In order to help pay for college, the grandparents of a child invest $2650 in a bond that pays 12% interest compounded semiannually. How much money will there be in 2.5 years?

If the closing price of a stock is $43.87 and the annual earnings per share is $0.93, find the P/E ratio.

Express 815%8 \frac { 1 } { 5 } \%851​% as a mixed number or a fraction. A) 41500\frac { 41 } { 500 }50041​ B) 4110\frac { 41 } { 10 }1041​ C) 41100\frac { 41 } { 100 }10041​ D) 4150\frac { 41 } { 50 }5041​

Express $8 \frac { 1 } { 5 } \%$ as a mixed number or a fraction. A) $\frac { 41 } { 500 }$ B) $\frac { 41 } { 10 }$ C) $\frac { 41 } { 100 }$ D) $\frac { 41 } { 50 }$