Question

1- Central Building Company borrowed $15,804 on a 280-day
simple interest note to expand their business. The note carried an
interest rate of 7.0%. Find the maturity value of the note.

Select one:

a. $15,888.87

b. $14,943.56

c. $16,664.44

d. $16,676.56

2- Find the cost, including a sales charge of $1 per bond,
for the transaction.

Bond: FPC

Last Price: 82.125

Number Purchased: 46

Select one:

a. $37,823.50

b. $37,777.50

c. $82,125.00

d. $45,954.00

3- Find the finance charge and total installment cost of the
loan. Round to the nearest cent.

Amount financed: $165

Down payment: $20

Cash price: $185

Number of payments: 6

Amount of payment: $28.59

Select one:

a. $12.54; $211.54

b. $171.54; $211.54

c. $6.54; $191.54

d. $13.46; $191.54

4- Solve the problem.

An invoice is received from Westminster Office Machines for
$497.10 with terms of 4/13 and dated FEB25 AS OF Mar 1.
If a partial payment of $245 is made on Mar 23, find the balance
due on the invoice.

Select one:

a. $241.89

b. $252.10

c. $255.21

d. $232.22

5- Solve the problem. Round rates to the nearest tenth of a
percent and dollar amounts to the nearest cent.

Bob’s Tires manufactures steel-belted radials at a cost of
$56.47 each. Bob then sells the tires at a 32.6% markup based on
cost. Find (a) the markup, (b) the selling price, and (c) the
markup as a percent of selling price.

Select one:

a. (a) $18.41

(b) $74.88

(c) 24.6%

b. (a) $173.22

(b) $229.69

(c) 306.7%

c. (a) $173.22

(b) $229.69

(c) 75.4%

d. (a) $18.41

(b) $74.88

(c) 32.6%

6- Find the exact interest to the nearest cent.

$3900 at 10% for 79 days

Select one:

a. $84.41

b. $8.56

c. $8.44

d. $85.58

7- Solve for the amount of discount and amount due.

Invoice amt: $618.30

Invoice date: Nov 11

Terms: 2/12 ROG

Goods rec’d: Dec 2

Date paid: Dec 12

Select one:

a. Amount of discount: $74.20; amount due: $544.10

b. Amount of discount: $12.17; amount due: $607.30

c. Amount of discount: $12.37; amount due: $605.93

d. Amount of discount: $0; amount due: $618.30

8- Find the discount period.

Loan made: April 24

Length of loan: 180 days

Date of discount: July 18

Select one:

a. 84 days

b. 95 days

c. 85 days

d. 96 days

9- Find the interest and maturity value for the loan. Round
to the nearest cent.

$4252 at 6% for 10 months

Select one:

a. $233.86; $4485.86

b. $214.39; $4466.39

c. $191.34; $4443.34

d. $212.60; $4464.60

10- Find the finance charge on the revolving charge account.
Assume interest is calculated on the unpaid balance of the account.
Round to the nearest cent.

Unpaid Balance Monthly Interest Rate

$493.80 1 7/8 %

Select one:

a. $9.26

b. $10.37

c. $8.64

d. $11.11

11- Find the current yield. Round to the nearest tenth of a
percent.

You invested $7625 in 125 shares of stock. During the
following year, the company paid dividends of $2.75 per share.

Select one:

a. 0.5%

b. 22.2%

c. 2.2%

d. 4.5%

12- Find the PE ratio. Round to the nearest whole number.

Stock: Crown

Current Price per Share: $32.59

Annual Net Earnings per Share: $9.06

Select one:

a. 1

b. 5

c. 4

d. 40

13- Solve the problem.

Bed ‘n’ Board Linen took inventory on the first of each month
for the full year. The sum of the inventories was $674.769. On
December 31, inventory was taken again and amounted
to $53,418. Find the average inventory for the year.

Select one:

a. $47,796.23

b. $56,014.38

c. $51,779.25

d. $60,682.25

14- Find the amount by which the interest compounded annually
is larger than the simple interest. Round to the nearest cent. Use
the formula M = P(1 + i)n to find the compound amount.

Principal: $710 Rate: 6% Years: 11

Select one:

a. $879.19

b. $169.19

c. $135.50

d. $410.59

16 -Find the exact number of days from the first date to the
second. Assume that the second month is in the following year, and
assume no leap years.

September 30 to March 23

Select one:

a. 174 days

b. 173 days

c. 178 days

d. 144 days

17- Solve the problem.

The James family wants to save some money in interest by
paying off their auto loan 15 months early. The 36-month loan
required payments of $455 per month. The car cost $18,600 with a
down payment of $6000. How much unearned interest did they save?

Select one:

a. $720.00

b. $681.08

c. $1311.08

d. $2287.44

18- Find the finance charge for the following revolving
charge account. Assume that interest is calculated on the average
daily balance of the account.

Average Daily Balance Monthly Interest Rate

$1649.25 1.2%

Select one:

a. $18.14

b. $197.91

c. $21.44

d. $19.79

19 -Stock prices on consecutive days for a stock are shown.
Find the increase (decrease) in the price of each stock as a number
and the percent increase (decrease) rounded to the nearest tenth of
a percent.

36.41, 37.26

Select one:

a. -0.85; 2.3%

b. 0.85; (2.3%)

c. 0.85; 2.3%

d. -0.85; (2.3%)

20- Find the discount and proceeds on the simple discount
note.

Face value: $8000.00

Discount rate: 10%

Time (days): 30

Select one:

a. Discount: $65.75

Proceeds: $7934.25

b. Discount: $66.67

Proceeds: $7933.33

c. Discount: $800.00

Proceeds: $7200.00

d. Discount: $0.00

Proceeds: $8000.00

22- Find the equivalent markup. Round to the nearest tenth of
a percent.

Markup on cost: 35.7%

Markup on selling price:

Select one:

a. 73.7%

b. 68.8%

c. 26.3%

d. 31.2%

24- Solve the problem.

On June 1, the unpaid balance in an account was $177. On June
13, a payment of $75 was made. The finance charge rate was 1.5% per
month of the average daily balance. Find the new balance at the end
of June.

Select one:

a. $121.80

b. $103.98

c. $103.93

d. $103.50

27 – Find principal to the nearest dollar, rate to the
nearest tenth of a percent, or time to the nearest day. Use
banker’s interest.

Hargray Telephone earned $150,00interest on a
$20,000 deposit in an account paying 3%. Find the number of days
that the funds were on deposit.

Select one:

a. 25 days

b. 90 days

c. 91 days

d. 135 days

28 – Provide an appropriate response.

Find the amount by which the interest compounded annually is
larger than the simple interest. Round to the nearest cent. Use the
formula M = P(1 + i)n to find the compound amount.

Principal: $5394 Rate: 8% Years: 5

Select one:

a. $3610.36

b. $218.40

c. $5767.96

d. $373.96

29 -Find the discount date and net payment date. (The net
payment date is 20 days after the final discount date.)

Invoice date: Sep 8

Terms: 3/6 EOM

Select one:

a. Discount date: Oct 6; net payment date: Oct 26

b. Discount date: Sept 14; net payment date: Oct 6

c. Discount date: Sept 14; net payment date: Oct 30

d. Discount date: Sept 6; net payment date: Oct 31

30 – Find the maturity date and proceeds. Round to the
nearest cent.

Face value: $5515

Discount rate: 12%

Date made: June 19

Time: 90 days

Maturity date:

Proceeds:

Select one:

a. Maturity date: September 19

Proceeds: $3883.16

b. Maturity date: September 17

Proceeds: $3883.16

c. Maturity date: September 19

Proceeds: $5349.55

d. Maturity date: September 17

Proceeds: $5349.55

34- Find the net cost equivalent and the percent form of the
single discount equivalent for the following series discount.

30/15

Select one:

a. 0.55; 45%

b. 0.595; 40.5%

c. 0.45; 55%

d. 0.405; 59.5%

35- Find the approximate annual percentage rate using the
approximate annual percentage rate formula. Round to the nearest
tenth of a percent.

Amount financed: $1200

Finance charge: $210

Number of monthly payments: 36

Select one:

a. 25.2%

b. 8.6%

c. 17.5%

d. 11.4%

36- Solve for the amount of discount and amount due.

Invoice amt: $293.41

Invoice date: Sept 13

Terms: 3/11 EOM

Goods rec’d: Sept 16

Date paid: Oct 9

Select one:

a. Amount of discount: $0; amount due: $293.41

b. Amount of discount: $8.50; amount due: $282.41

c. Amount of discount: $32.28; amount due: $261.13

d. Amount of discount: $8.80; amount due: $284.61

37 -Find the balance due on the maturity date of the note.
Find the total amount of interest paid on the note. Use the United
States Rule.

Principal: $38,400

Interest: 9.2%

Time (days): 180

Partial payment: $20,000 on day 100

Select one:

a. $19,777.57; $1377.57

b. $18,642.69; $242.69

c. $20,421.19; $2421.19

d. $22,101.51; $3701.51

38 -Find the discount and proceeds on the simple discount
note.

Face value: $9800.00

Discount rate: 9%

Time (days): 60

Select one:

a. Discount: $147.00

Proceeds: $9653.00

b. Discount: $0.00

Proceeds: $9800.00

c. Discount: $882.00

Proceeds: $8918.00

d. Discount: $144.99

Proceeds: $9655.01

39 -Find the discount period.

Loan made: Aug 21

Length of loan: 150 days

Date of discount: Dec 15

Select one:

a. 115 days

b. 35 days

c. 34 days

d. 116 days

41- Solve the problem.

Tom O’Donnell bought 10 Public Communications (PBC) bonds
maturing in 2025. According to the bond table, the last price is
listed as If the sales commission is $1 per bond, what
is the total purchase price?

Select one:

a. $8477.50

b. $9151.25

c. $8487.50

d. $8497.50

42- Solve the problem.

Claire Hummell bought 4 Hecht Company (HCO) bonds maturing in
2032. According to the bond table, the last price is listed as
98.375. With a sales commission of $1 per bond, find the total
purchase price.

Select one:

a. $3931.00

b. $3935.00

c. $3939.00

d. $3016.25

43- Using the Rule of 78, find the amount of unearned
interest for the loan paid in full before the date of maturity.
Round to the nearest cent.

Finance charge: $393

Total number of payments: 28

Remaining number of payments, when paid in full: 3

Select one:

a. $3.12

b. $5.81

c. $6.24

d. $2.90

44- Solve the problem. Round dollars to the nearest cent and
rates to the nearest tenth of a percent.

The cost of an item is $259. For a special year-end sale the
price is marked down 20%. Find the selling price of the item.

Select one:

a. $207.20

b. $215.83

c. $51.80

d. $310.80

45- Find the maturity value of the simple interest note.

Face Value: $3618

Length of Loan: 281 days

Rate: 12%

Select one:

a. $3956.89

b. $3953.43

c. $3961.66

d. $3951.05

46- Find the compound amount for the certificate of deposit.
Assume daily compounding using the following table. Round to the
nearest cent.

Amount: $2700

Rate: 3%

Years: 4

Select one:

a. $2782.22

b. $3136.93

c. $2924.87

d. $3044.23

47- Solve the problem. Use the approximate APR formula to
estimate the APR, and round rates to the nearest tenth of a
percent.

Maria Perez bought a washer-dryer combination on sale for
$450, charging it to her card and agreeing to pay $40.51 per month
for one year. Find the approximate annual percentage rate for this
loan.

Select one:

a. 14.8%

b. 15.8%

c. 16%

d. 14%

48 – Solve the problem.

The manager of a retirement account purchased 104 Solar
Energy (SNG) bonds that mature in 2020 for the retirement account.
According to a bond table, the last price is 96.375 and the coupon
rate is 7.750. Assuming a sales commission of $1 per bond, find the
total purchase price of the bonds, and the annual interest payment.

Select one:

a. $103,036.25, $5400.20

b. $100,126.00, $7979.40

c. $100,334.00, $8060.00

d. $100,230.00, $7750.00

49 -Solve the problem. Round dollars to the nearest cent and
rates to the nearest tenth of a percent.

Find the selling price of an item which cost a store $202.
The store has a 30% markup.

Select one:

a. $673.34

b. $60.60

c. $155.39

d. $262.60

50 -First, find the initial proceeds of the simple discount
note. Then, find the discount period, the discount, and proceeds
after discounting.

Date Loan Was Made: Jan. 19

Maturity Value: $9000

Length of Loan: 90 days

Rate: 10%

Date of Discount: Mar. 9

Discount %: 9%

Select one:

a. Initial Proceeds: $8775.00;

Discount Period: 41 days;

Discount: $92.25;

Proceeds After Discount: $17,907.75

b. Initial Proceeds: $8775.00;

Discount Period: 41 days;

Discount: $184.50;

Proceeds After Discount: $17,907.75

c. Initial Proceeds: $8775.00;

Discount Period: 60 days;

Discount: $184.50;

Proceeds After Discount: $8840.25

d. Initial Proceeds: $8775.00;

Discount Period: 41 days;

Discount: $92.25;

Proceeds After Discount: $8907.75

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