Business Calculations Mid-Term Exam

The price of a Panasonic 3D flat screen television decreased by 1/5. If the original price was $1,500, what is the price today?

$1,200

Janet took out a loan of $50,000 from Bank of America at 8% on March 19, 2015, which is due on July 8, 2015. Using exact interest, the amount of Janet's interest cost is:

$1,216.44

United Missouri Bank discounts a 120-day note for $60,000 at 6.75%. It uses 360 days in a year. What is the bank discount?

$1,350

If the net price of a stove is $900 and the trade discount rate is 40%, the list price is:

$1,500

An invoice dated 5/19/xx received by Jones Supply indicated a balance of $17,000. This balance included a freight charge of $1,000. Terms of the bill were 5/10, 4/30, n/60. Assuming Jones pays off the bill on June 4, he pays:

$16,666.67

North Shore Community College reimburses faculty members $.298 per mile to go to a workshop. Professor Wales submitted her travel log for a total of 650.11 miles. What reimbursement can Professor Wales expect? (Round to the nearest amount.)

$193.73

Pete Hax rents a ski house in Vail for $1,800 per month for six months. Assuming Pete spends $12,955 for the total trip, how much was spent above the renting of the ski house?

$2,155

Jeff Jones has contracted for an oil delivery price of $1.95 per gallon. His tank holds 210 gallons. If Jeff has six fill-ups during the winter, what will be his total cost?

$2,457

If Jan sells 2,500 glow sticks on the Fourth of July at $1.99 each, what will her total profit be if each stick cost her $.88?

$2,775

B. Blue discounts a 90-day note for $20,000 at 4%. The bank discount is (assume ordinary interest):

$200

Lester Moy bought two new Michelin Tires for his car at $99.55 per tire. He was also charged $4.95 per tire for mounting, $2.65 per tire for valves, and $3.99 per tire for balancing. What was Lester's final bill?

$222.28

Jeff Jones is paid $60 per day at his job at J.C. Penney. Jeff became ill on Monday and had to leave after 2/5 of a day. What did he earn on Monday? (Assume no work, no pay.)

$24

Joyce took out a loan for $21,900 at 12% on March 18, 2015, which will be due on January 9, 2016. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of:

$24,068.10

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest):

$546.67

The single equivalent discount rate of the trade discount 5/4/1 is:

.09712

The net price equivalent rate of 9/15/18 is:

.63427

Which of the following is usually not true about customer catalogs?

Completely updated once a year with a new revised catalog

If percent markup on cost and selling price are known, one is able to compute the:

Cost

A simple discount note results in:

Interest deducted in advance

Canceling:

Is an alternative method to reducing fractions to the lowest terms

The maker of a promissory note:

Issues the note

The rate in the portion formula is equal to:

Portion divided by base.

The credit period is:

typically longer for perishable goods and for buyers with higher credit risk.

A trip to Portland, Oregon, from Boston will take 7 3/4 hours. Assuming we are two-thirds of the way there, how much longer in hours will the trip take?

2 7/12

Adding 1,690 + 88 + 410 + 30 results in a sum of:

2,218

In Johnson Corporation, the first shift produced 8 1/2 times as many light bulbs as the second shift. If the total light bulbs produced were 24,700, how many light bulbs were produced on shift 2?

2,600

At the Boston Children's Museum, it was estimated that 38% of all visitors are from in state. On Saturday, 8,000 people attended the museum. What is the number of out-of-state people in attendance?

4,960

Kohl's sells watches that cost $6.95 for a selling price of $39.99. What is the percent markup on cost? (Round to the nearest tenth percent.)

475.4%

1,620 is 120% of ______:

1,350

Jerry's age 10 years ago can be expressed as:

A - 10

200 days from March 3 is:

September 19

The greatest common divisor of 20/30 is:

10

In adding 4/5 + 18/100 the least common denominator is:

100

The LCD of 6/20, 9/5, 7/50, and 3/4 is:

100

Shelley Tilton bought 1 3/4 lbs of sliced roast beef, 8 1/2 lbs of sliced ham, and 3/4 lb of coleslaw at Albertson's Market. What was the total weight of her purchases?

11 lbs

Jordan traveled 6/7 of an estimated 1,800-mile trip. How many miles remain in her trip:

257

B/8 = 90; B equals:

720

An equation is:

A math expression of equality

If one discounts a non-interest-bearing note, all the following will be used except:

Principal + interest

Contribution margin is:

Revenues minus variable cost

A note dated Dec. 13 and due July 5 runs for exactly:

204 days

To convert a percent to a decimal:

Drop percent symbol and move decimal two places to left.

Federal Reserve banks as well as the federal government like to calculate simple interest based on:

Exact interest

On Tuesday, Pizza Hut sold 60 plain pizzas at $5 each; 20 meatball pizzas at $8 each; 25 Sicilian pizzas at $9 each; and 33 large crust supremes at $10 each. What were the total dollar sales for Pizza Hut on Tuesday?

$1,015

Mike Roland traveled 10,850 miles. His Ford truck averaged 16 miles per gallon. Assuming a gallon of gas cost $2.10, what was Mike's gasoline cost for the trip?

$1,424.06

Joan Roe borrowed $85,000 at a rate of 11 3/4%. The date of the loan was July 8. Joan is to repay the loan on Sept. 14. Assuming the loan is based on exact interest, the interest Joan will pay on Sept. 14 is:

$1,860.68

The average pay of employees is $399.44 per week at a local True Value Hardware store. Jay Miller earns $411.11 per week. How much is Jay's pay over the average?

$11.67

A $15,000, 11%, 120-day note dated Sept. 3, is discounted on Nov. 11. Assuming a bank discount rate of 9%, the proceeds would be:

$15,351.74

A local college bookstore paid a net price of $12,500 for textbooks for the coming semester. The publisher offered a trade discount of 20%. The publisher's original list price was:

$15,625

Ray Furniture wants to buy a dining room set for $7,000 with a 20% trade discount. Ray needs the cash to pay the bill and is considering discounting a 90-day note dated May 12, with a maturity value of $6,500 at Hunt Bank at a discount rate of 13% on June 5. The bank discount if Ray discounts the note is:

$154.92

Jay King, owner of a local Bed and Bath store, knows that his customers will pay at most $299 for a blow-up bed. Assuming Jay wants a 40% markup on the selling price, the most he could pay the manufacturer for the blow-up bed is:

$179.40

The maturity value of a $28,000, 6%, 60-day interest-bearing note on August 6, is:

$28,280

Ed Sloan bought 6,000 shares of stock in eBay Co. After holding the stock for six months, he sold 500 shares on Monday, 220 shares on Tuesday and again on Thursday, and 900 shares on Friday. If the average share of stock he still has is worth $70 per share, what is the total value of the stock?

$291,200

Lee Co. carpeted its offices, requiring 310 square yards of commercial carpet. The total cost of the carpet at Home Depot was $10,230. How much did Lee pay per square yard?

$33

On May 17, Jane took out a loan for $33,000 at 6% to open her law practice office. The loan will mature the following year on January 16. Using the ordinary interest method, what is the maturity value due on January 16?

$34,342

Jeff wants to buy a new Ford Fusion for $24,200, with shipping costs of $800 and interest cost of $1,000. If Jeff pays in 72 equal payments, what will Jeff's monthly payment be?

$361.11

Macy's Department Stores markup men's cologne 63% on cost for an 8-ounce bottle. A bottle of cologne costs Macy's $23.00. What is the selling price for the 8-ounce bottle?

$37.49

Jim sells college textbooks. To date Jim has sold $141,002 worth of textbooks. His sales quota is $194,159. Tomorrow he expects to sell $15,005 worth of textbooks to B College. His last stop will be Munroe College. If he sells what he expects to at B College, what must he sell at Munroe to meet his quota?

$38,152

Sandra Gloy borrowed $5,000 on a 120-day 5% note. Sandra paid $500 toward the note on day 40. On day 90 she paid an additional $500. Using the U.S. Rule, her adjusted balance after the first payment is:

$4,527.78

A local True Value Hardware Store marks its goods up 38% on cost. If a snow blower cost True Value $400, the selling price would be:

$552.00

Bill's Furrier marks up mink coats $3,000. This represents a 50% markup on cost. What is the cost of the coats?

$6,000

Printed pencils cost $.33 1/3 each for an order of 18,000 pencils. On Monday Jim Company placed an order for 18,000 pencils. What is the exact cost of the pencils for Jim Co.? Be sure to use the fractional equivalent in your calculation.

$6,000

One-ninth of all sales at a local Subway are for cash. If cash sales for the week were $690, what were Subway's total sales?

$6,210

A computer sells for $995, which is marked up 35% of the selling price. The cost of the computer is:

$646.75

In 2010, America's Healthcare cost $14,009 per family. Assuming a growth rate of 8.5% a year with a forecasted cost of $21,065 in 2015, how much more will a family pay in 2015?

$7,056

Joe Berry and Jane Rose received a total of $180,000 from a deceased relative's estate. They decided to put away $80,000 in a trust for their child and divide the remainder into 3/4 for Jane and 1/4 for Joe. How much will Jane receive?

$75,000

With interest of $1,832.00 and a principal of $16,000 for 206 days, using the ordinary interest method, the rate is:

20%

Joanne's Dress Shop received an invoice dated July 25 for $1,400, with terms of 2/10, 1/15, n/60. On August 8, Joanne's Dress Shop sent a partial payment of $750. The actual amount that should be credited is:

$757.58

B. Brady signed a new basketball contract for the year for $1,005,000. Assuming a schedule of 13 games, what are his earnings per game? $73,707.69

$77,307.69

A bedroom set lists for $12,000 and carries a trade discount of 30%. Freight (FOB shipping point) of $150 is not part of list price. Calculate the delivered price of the bedroom set including the freight. Assume a cash discount of 2%.

$8,382

On April 12, Dr. Rowan accepted a $10,000, 60-day, 11% note from Bill Moss granting a time extension on a past-due account. Dr. Rowan discounted the note at the bank at 12% on May 13. The bank discount is:

$98.44

A local RadioShack store wants to buy a new line of plasma TVs. Manufacturer A offers chain discounts of 18/12, and Manufacturer B offers terms of 17/13. Which single equivalent discount rate is the best deal?

.2784: Manufacturer A

Jill Co. sells thermometers ($2) and hot water bottles ($6). If total sales were $312 and customers bought 10 times as many thermometers as hot water bottles, what would be the number of hot water bottles sold?

12

In Ryan Corporation, the first shift produced 5 1/2 times as many light bulbs as the second shift. If the total light bulbs produced were 16,250, how many light bulbs were produced on shift 1?

13,750

170% converted to a fraction equals:

17/10

Subtracting 766 from 941 results in a difference of:

175

88,000 times 300 equals:

26,400,000

Camille Keegan sells lamps for $105.55 that cost her $75.00. Camille's percent of markup based on the selling price is:

28.94%

During the Great Recession that began in January 2008, average weekly claims for unemployment were 420,000. The normal weekly average during full employment is 122,000. How many more people were filing for unemployment in January 2008?

298,000

Round 2,689 all the way:

3,000

Round all-the-way 2,689:

3,000

In Professor Shannon's economics class there are 12 male students. Females represent 60% of the class total. How many students does Professor Shannon have in his economics class?

30

An LCD flat screen TV at Best Buy increased in price from $900 to $1,200. What was the percent of increase?

33 1/3%

Joe Jackson worked 8 hours on Monday, 4 1/4 hours on Tuesday, 6 1/8 hours on Wednesday, 7 1/4 hours on Thursday, and 8 1/8 hours on Friday. Calculate the total number of hours Joe worked for the week.

33 3/4

The price of an iPod dropped from $299.99 to $180.55. What was the percent decrease in price? (Round to nearest hundredth percent.)

39.81%

9 3/4% converted to a fraction equals:

39/400

In the number 49,869 there are how many tens?

6

13/2 converted to a mixed number is:

6 1/2

2,000(A - 5) = 110,000; A equals:

60

The Weather Channel reported that normal snowfall is 138.44 inches for Lexington County. This winter the following snowfall occurred: December 18.46 inches January 15.438 inches February 18.999 inches March 24.861 inches How much was the snowfall below normal?

60.682 inches

.65 converted to percent is:

65%

The complement of 35% is:

65%

Belts cost $160 per carton, and shoes cost $465 per carton. If an order comes in for a total of 88 cartons for $19,265, what is the number of cartons of belts? (Hint: Let S = cartons ofbelts)

71

A $120,000, 5%, 200-day note dated June 6, is discounted on October 8. The discount period is:

76 days

Lisa Wolf has 20 1/8 days of vacation per year at Walmart. To date she has taken 4 1/2 days in January, 3 1/4 days in February, and 4 1/8 days in March. How much more vacation time is Lisa entitled to?

8 1/4

Justin discounts a 115-day note for $26,000 at 8.5%. The effective rate of interest to the nearest tenth percent is:

8.7%

Janet Woo received the following grades in an accounting class at McLennan Community College: 65, 80, 70, 100, 75, and 90. The instructor said he would drop the lowest grade. What is Janet's average?

83

At maturity, using the U.S. Rule, the interest calculated from the last partial payment is:

Added to adjusted balance

The markdown percent is calculated by:

Amount of markdown divided by original selling price

In discounting an interest-bearing note, the discount period represents:

Number of days from date of discount to date of maturity