Math 1332 Test 2 REVIEW Chapters 8 & 11 (Partial 11) Blitzer

Math 1332Math 1332Math 1332Math 1332 Test 2 Test 2 Test 2 Test 2 _REVIEW _REVIEW _REVIEW _REVIEW

Chapters 8 & 11 (Partial 11)_BlitzerChapters 8 & 11 (Partial 11)_BlitzerChapters 8 & 11 (Partial 11)_BlitzerChapters 8 & 11 (Partial 11)_Blitzer

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Express the percent as a decimal.

1) 9%

A) 9 B) 0.9 C) 90 D) 0.09

1)

Solve the problem.

2) 364.9 is 101

4% of what number?

A) 35,600 B) 35.6 C) 3560 D) 356

2)

Write the decimal as a percent.

3) 0.00577

A) 0.2885% B) 0.000577% C) 0.577% D) 0.0577%

3)

Express the percent as a decimal.

4) 31%

A) 0.31 B) 0.2 C) 0.031 D) 3.1

4)

Write the decimal as a percent.

5) 38

A) 0.38% B) 1900% C) 3800% D) 3.8%

5)

Use the tables below to solve the problem. Round dollar amounts to the nearest cent and percents to the nearest tenth.

6) To help pay for college, you worked part-time at a local restaurant, earning $30,000 in wages and

tips.

(a) Calculate your FICA taxes.

(b) Use the tax table to calculate your income tax. Assume you are single with no dependents, have no

adjustments or tax credit, and you take the standard deduction.

(c) Including both FICA and income tax, what percentage of your gross income are your federal taxes?

A) (a) $435.00

(b) $2483.75

(c) 9.7%

B) (a) $435.00

(b) $3968.75

(c) 14.7%

C) (a) $2295.00

(b) $2483.75

(c) 15.9%

D) (a) $2295.00

(b) $3968.75

(c) 20.9%

6)

TEST 1 - Page TEST 1 - Page TEST 1 - Page TEST 1 - 222 Review Review Review Review

Use the table to calculate the tax owed. Round to the nearest cent.

7) a head of household with a taxable income of $79,000 and a $6500 tax credit

A) $14,047.50 B) $9912.50 C) $18,125.00 D) $7547.50

7)


Use the tables below to solve the problem. Round dollar amounts to the nearest cent and percents to the nearest tenth.

8) You decide to work part-time at a local supermarket. The job pays $8.50 per hour and you work 21

hours per week. Your employer withholds 10% of your gross pay for federal taxes, 7.65% for FICA

taxes, and 4% for state taxes.

(a) What is your weekly gross pay?

(b) How much is withheld per week for federal taxes?

(c) How much is withheld per week for FICA taxes?

(d) How much is withheld per week for state taxes?

(e) What is your weekly net pay?

(f) What percentage of your gross pay is withheld for taxes?

A) (a) $178.50

(b) $1785.00

(c) $13.66

(d) $714.00

(e) $146.99

(f) 1407.7%

B) (a) $217.15

(b) $7.14

(c) $13.66

(d) $17.85

(e) $178.50

(f) 0.2%

C) (a) $217.15

(b) $17.85

(c) $13.66

(d) $7.14

(e) $17.85

(f) 21.7%

D) (a) $178.50

(b) $17.85

(c) $13.66

(d) $7.14

(e) $139.85

(f) 21.7%

8)


Use the table to calculate the tax owed. Round to the nearest cent.

9) a married woman filing separately with a taxable income of $101,000

A) $33,330.00 B) $21,772.75 C) $7744.75 D) $18,881.75

9)

Use the 2016 FICA tax rates in the table below to solve the problem. Round your answer to the nearest dollar.

10) If you are self-employed and earn $176,500, what are your FICA taxes?

A) $9906 B) $19,813 C) 27,005 D) $12,311

10)


The principal P is borrowed at simple interest rate r for a period of time t. Find the simple interest owed for the use of the

money. Assume 360 days in a year and round answer to the nearest cent.

11) P = $800.00

r = 4%

t = 7 months

A) $18.67 B) $224.00 C) $1024.00 D) $818.67

11)

The principal P is borrowed and the loan's future value, A, at time t is given. Determine the loan's simple interest rate, r,

to the nearest tenth of a percent.

12) P = $110, A = $143.00, t = 3 years

A) 10.3% B) 10% C) 5.5% D) 20%

12)

The principal P is borrowed at simple interest rate r for a period of time t. Find the loan's future value, A, or the total

amount due at time t. Round answer to the nearest cent.

13) P = $7600, r = 5.5%, t = 20 months

A) $15,960.00 B) $8301.67 C) $8296.67 D) $8360.00

13)

The principal P is borrowed at simple interest rate r for a period of time t. Find the simple interest owed for the use of the

money. Assume 360 days in a year and round answer to the nearest cent.

14) P = $16,500.00

r = 7%

t = 120 days

A) $1155.00 B) $385.00 C) $2310.00 D) $379.73

14)

The principal P is borrowed at simple interest rate r for a period of time t. Find the loan's future value, A, or the total

amount due at time t. Round answer to the nearest cent.

15) P = $11,000.00, r = 9%, t = 150 days

A) $11,425.50 B) $11,406.85 C) $159,505.00 D) $11,412.50

15)


Solve the problem. Round to the nearest tenth of a percent.

A = P 1 + r

n

ntP =

A

1 + r

n

ntA = Pert Y = 1 +

r

n

n - 1

16) A passbook savings account has a rate of 5%. Find the effective annual yield if the interest is

compounded monthly.

A) 5.1% B) 4.9% C) 5.2% D) 5%

16)

Solve the problem. Round to the nearest cent.

A = P 1 + r

n

ntP =

A

1 + r

n

ntA = Pert Y = 1 +

r

n

n - 1

17) Brad wants to have $17,000 available to buy a car in 5 years. How much must he deposit now at

5.5% compounded monthly to reach that goal?

A) $22,905.95 B) $12,395.17 C) $12,920.84 D) $22,366.96

17)

The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Find

how much money will be in the account after the given number of years (Assume 360 days in a year.), and how much interest was

earned.

A = P 1 + r

n

ntP =

A

1 + r

n

ntA = Pert Y = 1 +

r

n

n - 1

18) Principal: $3500

Rate: 4.5%

Compounded: monthly

Time: 4 years

A) amount in account: $3552.80; interest earned: $52.80

B) amount in account: $3660.79; interest earned: $160.79

C) amount in account: $4188.85; interest earned: $688.85

D) amount in account: $4865.38; interest earned: $673.82

18)


Solve the problem.

19) Suppose Carla has $7000 to invest. Which investment yields the greater return over 4 years: 7%

compounded quarterly or 6.85% compounded monthly?

A) They are the same.

B) The rate of 6.85% compounded monthly is better.

C) The rate of 7% compounded quarterly is better.

19)

Solve the problem. Round to the nearest cent.

A = P 1 + r

n

ntP =

A

1 + r

n

ntA = Pert Y = 1 +

r

n

n - 1

20) James and Susan wish to have $10,000 available for their wedding in 4 years. How much money

should they set aside now at 6% compounded monthly in order to reach their financial goal?

A) $2500.00 B) $9419.05 C) $7870.98 D) $10,616.78

20)

Solve the problem. Round to the nearest dollar.

21) Suppose that you earned a bachelor's degree and now you're teaching middle school. The school

district offers teachers the opportunity to take a year off to earn a master's degree. To achieve this

goal, you deposit $1500 at the end of every three months in an annuity that pays 5.5% compounded

quarterly. How much will you have saved at the end of 6 years? Find the interest.

A) $40,257; $4257 B) $42,310; $6310

C) $151,401; $115,401 D) $35,644; $356

21)

Solve the problem. Round up to the nearest dollar.

22) You would like to have $41,000 in 5 years for the down payment on a new house following college

graduation by making deposits at the end of every three months in an annuity that pays 4.25%

compounded quarterly. How much should you deposit at the end of every three months? How

much of the $41,000 comes from deposits and how much comes from interest?

A) $1377; $27,540 from deposits and $13,460 from interest

B) $2048; $40,960 from deposits and $40 from interest

C) $2204; $22,040 from deposits and $18,960 from interest

D) $1851; $37,020 from deposits and $3980 from interest

22)


Find the value of the annuity and the interest. Round to the nearest dollar.

A = P[(1 + r)t - 1]

rA =

P 1 + r

n

nt - 1

r

n

P =

Ar

n

1 + r

n

nt - 1

23) Periodic Deposit: $100 at the end of each year

Rate: 4% compounded annually

Time: 13 years

A) $400; $900 B) $1663; $363 C) $4163; $2863 D) $1503; $203

23)

Solve the problem. Round to the nearest dollar.

24) Suppose that at age 25, you decide to save for retirement by depositing $95 at the end of every

month in an IRA that pays 6.25% compounded monthly. How much will you have from the IRA

when you retire at age 65? Find the interest.

A) $220,772; $175,172

B) $199,715; $154,115

C) $202,532; $156,932

D) $79,234,700,509,013,104; $79,234,700,508,967,504

24)


SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Refer to the stock table to answer the questions. Where necessary, round dollar amounts to the nearest cent.

25)

52-week

High Low Stock Sym Div

Yld

% PE

Vol

100s Hi Lo Close

Net

Chg

29.5 18.25 Icarus ICR 0.34 1.2 25 1047 25.38 25.25 25.38 ......

Use the stock table for Icarus to answer the following questions.

a. What were the high and low prices for the last 52 weeks?

b. If you owned 3000 shares of Icarus stock last year, what is the dollar amount of the dividend

you received?

c. What is the annual return for dividends alone?

d. How many shares of Icarus were traded yesterday?

e. What were the high and low prices for Icarus shares yesterday?

f. What was the price at which Icarus traded when the stock exchange closed yesterday?

g. What does ... in the net change column mean?

h. Compute Icarus's annual earnings per share using

Annual earnings per share = Yesterday's closing price per share

PE ratio .

25)


Use PMT =

Pr

n

1 - 1 + r

n

-nt. Round to the nearest dollar.

26) Suppose that you decide to buy a car for $25,792, including taxes and license fees. You saved $5000

for a down payment and can get a five-year loan at 6.57%. Find the monthly payment and the total

interest for the loan.

A) $408; $15,388 B) $603; $15,388 C) $505; $4508 D) $408; $3688

26)


The table shows the expense of operating and owning four selected cars, by average costs per mile. Use the appropriate

information in the table to solve the problem.

27) Average Annual Costs of Owning and Operating a Car for Selected Cars

Average Costs Per Mile

Model Operating Ownership Total

Car A $0.22 $0.78 $1.00

Car B $0.14 $0.55 $0.69

Car C $0.28 $0.32 $0.60

Car D $0.17 $0.68 $0.85

If you drive 30,000 miles per year, by how much does the total annual expense for Car A exceed that

of Car C over five years?

A) $240,000 B) $48,000 C) $60,000 D) $12,000

27)

Determine whether the statement is true or false.

28) If you have to make a fixed payment based on the car's residual value, then you have made an

open-end lease agreement.

A) True B) False

28)

Use A =

P 1 + r

n

nt - 1

r

n

. Round all computations to the nearest dollar.

29) Suppose that you drive 40,000 miles per year and gas averages $4 per gallon.

(i) What will you save in annual fuel expenses by owning a hybrid car averaging 40 miles per gallon

rather than an SUV averaging 20 miles per gallon?

(ii) If you deposit your monthly fuel savings at the end of each month into an annuity that pays 5.6%

compounded monthly, how much will you have saved at the end of seven years?

A) (i) $4100;

(ii) $35,040

B) (i) $3900;

(ii) $33,330

C) (i) $5000;

(ii) $42,731

D) (i) $4000;

(ii) $34,185

29)


The table shows the expense of operating and owning four selected cars, by average costs per mile. Use the appropriate

information in the table to solve the problem.

30) Average Annual Costs of Owning and Operating a Car for Selected Cars

Average Costs Per Mile

Model Operating Ownership Total

Car A $0.21 $0.78 $0.99

Car B $0.12 $0.58 $0.70

Car C $0.26 $0.32 $0.58

Car D $0.19 $0.64 $0.83

(a) If you drive 20,000 miles per year, what is the total annual expense for Car B?

(b) If the total annual expense for Car B is deposited at the end of each year into an IRA paying 8.9%

compounded yearly, how much will be saved at the end of five years? Round your answer to the

nearest dollar, if necessary.

A) (a) $14,000; (b) $13,622,059 B) (a) $28,571; (b) $363,626

C) (a) $28,571; (b) $1,053,171 D) (a) $14,000; (b) $83,619

30)

Use PMT =

Pr

n

1 - 1 + r

n

-nt to determine the regular payment amount, rounded to the nearest dollar.

31) The price of a home is $210,000. The bank requires a 15% down payment and one point at the time

of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 6.5%.

a. Find the required down payment.

b. Find the amount of the mortgage.

c. How much must be paid for the one point at closing?

d. Find the total cost of interest over 30 years, to the nearest dollar.

A) a. down payment: $31,500

b. amount of mortgage: $178,500

c. points paid at closing: $2100

d. total cost of interest over 30 years: $227,667

B) a. down payment: $31,500




C) a. down payment: $31,500




D) a. down payment: $31,500




31)


Determine whether the statement is true or false.

32) Owning a home provides significant tax advantages, including deduction of mortgage interest and

property taxes.

A) True B) False

32)

Use PMT =

Pr

n

1 - 1 + r

n

-nt to determine the regular payment amount, rounded to the nearest dollar.

33) In terms of paying less in interest over the full term of the mortgage, which is more economical for

a $250,000 mortgage : 30-year fixed at 7.00% or 20-year fixed at 6.50%?

A) The 20-year fixed rate at at 6.50% is more economical.

B) They are the same.

C) The 30-year fixed rate at at 7.00% is more economical.

33)

Use the following advice from most financial advisors to solve the problem.∙∙∙∙ Spend no more than 28% of your gross monthly income for your mortgage payment.∙∙∙∙ Spend no more than 36% of your gross monthly income for your total monthly debt.

Round all calculations to the nearest dollar, if necessary.

34) Suppose that your gross annual income is $60,000.

(a) What is the maximum amount you should spend each month on a mortgage payment?

(b) What is the maximum amount you should spend each month for total credit obligations?

(c) If your monthly mortgage payment is 75% of the maximum amount you can afford, what is the

maximum amount you should spend each month for all other debt?

A) (a) $1400; (b) $1800; (c) $50 B) (a) $16,800; (b) $21,600; (c) $9000

C) (a) $1400; (b) $1800; (c) $750 D) (a) $1400; (b) $1800; (c) $1050

34)


Solve the problem.

35) The cost of a home is financed with a $290,000, 30-year fixed-rate mortgage at 7%. The buyer will

make 360 payments of $1928.50. Prepare a loan amortization schedule for the first three months of

the mortgage. Round to the nearest cent.

Payment

Number

Interest

Payment

Principal

Payment

Balance

of Loan

1

2

3

A)

Payment

Number

Interest

Payment

Principal

Payment

Balance

of Loan

1 $1691.67 $236.83 $289,819.17

2 $1690.61 $237.89 $289,401.96

3 $1688.90 $239.6 $289,285.36

B)

Payment

Number

Interest

Payment

Principal

Payment

Balance

of Loan

1 $1691.67 $236.83 $289,763.17

2 $1690.29 $238.21 $289,761.79

3 $1688.90 $239.6 $289,285.36

C)

Payment

Number

Interest

Payment

Principal

Payment

Balance

of Loan

1 $1691.67 $236.83 $289,763.17

2 $1690.29 $238.21 $289,524.96

3 $1809.53 $118.97 $289,405.99

D)

Payment

Number

Interest

Payment

Principal

Payment

Balance

of Loan

1 $1691.67 $236.83 $289,763.17

2 $1690.29 $238.21 $289,524.96

3 $1688.90 $239.6 $289,285.36

35)

Solve the problem by applying the Fundamental Counting Principle with two groups of items.

36) A person can order a new car with a choice of 6 possible colors, with or without air conditioning,

with or without heated seats, with or without anti-lock brakes, with or without power windows,

and with or without a CD player. In how many different ways can a new car be ordered in terms of

these options?

A) 192 B) 384 C) 96 D) 12

36)


37) A restaurant offers a choice of 4 salads, 10 main courses, and 4 desserts. How many possible

3-course meals are there?

A) 40 B) 18 C) 160 D) 320

37)

38) There are 4 roads leading from Bluffton to Hardeeville, 10 roads leading from Hardeeville to

Savannah, and 5 roads leading from Savannah to Macon. How many ways are there to get from

Bluffton to Macon?

A) 400 B) 200 C) 40 D) 19

38)

39) How many different four-letter secret codes can be formed if the first letter must be an S or a T?

A) 35,152 B) 456,976 C) 421,824 D) 72

39)

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

40) Jamie is joining a music club. As part of her 4-CD introductory package, she can choose

from 12 rock selections, 10 alternative selections, 7 country selections and 5 classical

selections. If Jamie chooses one selection from each category, how many ways can she

choose her introductory package?

40)


Use the formula for nPr to evaluate the expression.

41) 6P4

A) 2 B) 24 C) 30 D) 360

41)

Use the formula for nPr to solve.

42) A club elects a president, vice-president, and secretary-treasurer. How many sets of officers are

possible if there are 15 members and any member can be elected to each position? No person can

hold more than one office.

A) 910 B) 2730 C) 1365 D) 32,760

42)


43) In a contest in which 7 contestants are entered, in how many ways can the 5 distinct prizes be

awarded?

A) 2520 B) 42 C) 84 D) 21

43)

Solve the problem.

44) There are 12 members on a board of directors. If they must elect a chairperson, a secretary, and a

treasurer, how many different slates of candidates are possible?

A) 479,001,600 B) 1320 C) 1728 D) 220

44)

Use the Fundamental Counting Principle to solve the problem.

45) There are 8 performers who are to present their acts at a variety show. One of them insists on being

the first act of the evening. If this request is granted, how many different ways are there to schedule

the appearances?

A) 64 B) 5040 C) 40,320 D) 56

45)


Answer Key

Testname: UNTITLED1

1) D

2) C

3) C

4) A

5) C

6) C

7) D

8) D

9) B

10) B

11) A

12) B

13) C

14) B

15) D

16) A

17) C

18) C

19) C

20) C

21) B

22) D

23) B

24) C

25) a. 52-week high: $29.50; 52-week low $18.25

b. $1020

c. 1.2%

d. 104,700 shares

e. yesterday's high: $25.38; yesterday's low: $25.25

f. $25.38

g. This means there was no change in price for a share of stock from the market close two days ago to yesterday's market close.

h. $1.02

26) D

27) C

28) A

29) D

30) D

31) D

32) A

33) A

34) C

35) D

36) A

37) C

38) B

39) A

40) 4200

41) D

42) B


abbas

Text Box

43) A 44) B 45) B

Math 1332 Test 2 REVIEW Chapters 8 & 11 (Partial 11) Blitzer

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Transcript of Math 1332 Test 2 REVIEW Chapters 8 & 11 (Partial 11) Blitzer