Fractions Percents and Interest Formulas

Find the value of the annuity and the interest. Round to the nearest dollar. Periodic Deposit: $100 at the end of each year Rate: 4% compounded annually Time: 9 years Select one: A. $921; $21 B. $1058; $158 C. $342; $558 D. $3558; $2658

The correct answer is: $1058; $158

Solve the problem. Round to the nearest dollar. 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 4.25% compounded monthly. How much will you have from the IRA when you retire at age 65? Find the interest. Select one: A. $118,696; $73,096 B. $12,735,807,037,013; $12,735,806,991,413 C. $146,390; $100,790 D. $119,567; $73,967

The correct answer is: $119,567; $73,967

Solve the problem. Round up to the nearest dollar. How much should you deposit at the end of each month into an IRA that pays 6.5% compounded monthly to have $4 million when you retire in 45 years? How much of the $4 million comes from interest? Select one: A. $1239; $669,060 B. $5334; $853,440 C. $1239; $3,330,940 D. $5334; $3,146,560

The correct answer is: $1239; $3,330,940

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. P = $600 r = 6.25% t = 5 months Select one: A. $17.05 B. $15.63 C. $615.63 D. $187.50

The correct answer is: $15.63

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. P = $140 r = 4% t = 3 years Select one: A. $16.80 B. $12.00 C. $156.80 D. $5.60

The correct answer is: $16.80

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. P = $160, r = 7%, t = 3 years Select one: A. $193.60 B. $1033.60 C. $171.20 D. $181.00

The correct answer is: $193.60

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. Average Annual Costs of Owning and Operating a Car for Selected Cars Average Costs Per Mile If you drive 10,000 miles per year, by how much does the total annual expense for Car A exceed that of Car C over five years? Select one: A. $4100 B. $79,500 C. $20,500 D. $15,900

The correct answer is: $20,500

Use PMT = . Round to the nearest dollar. Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly payments and the total interest for the loan. Select one: A. $244; $11,712 B. $698; $23,504 C. $286; $13,728 D. $244; $1712

The correct answer is: $244; $1712

Use PMT = to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $330,000. The bank requires a 5% down payment. After the down payment, the balance is financed with a 20-year fixed-rate mortgage at 8%. Determine the monthly mortgage payment (excluding escrowed taxes and insurance) to the nearest dollar. Select one: A. $2722 B. $2622 C. $2610 D. $2637

The correct answer is: $2622

If you placed $1 into an account that paid interest at a rate of 5% and compounded the interest monthly, how much would that account be worth in 300 years? Select one: A. $3.48 B. $1,584,357.24 C. $1793.99 D. $3,168,714.47

The correct answer is: $3,168,714.47

Jeans with an original price of $58 are on sale at 25% off. What is the sale price of the jeans? (Round to the nearest cent, if necessary.) Select one: A. $72.50 B. $14.50 C. $56.55 D. $43.50

The correct answer is: $43.50

Determine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. Round answer to the nearest dollar. A = $10,000, r = 14.2%, t = 4 years Select one: A. $6434 B. $6392 C. $6378 D. $15,680

The correct answer is: $6378

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? Select one: A. $9419.05 B. $2500.00 C. $10,616.78 D. $7870.98

The correct answer is: $7870.98

A bank offers a CD that pays a simple interest rate of 8%. How much must you put in this CD now in order to have $13,760 to replace all the windows in your house in 9 years? Select one: A. $8000 B. $576 C. $5760 D. $11,520

The correct answer is: $8000

Use PMT = to determine the regular payment amount, rounded to the nearest dollar. Suppose your credit card has a balance of $6500 and an annual interest rate of 14%. You decide to pay off the balance over three years. If there are no further purchases charged to the card, (a) How much must you pay each month? (b) How much total interest will you pay? Now suppose decide to pay off the balance over one year rather than three. (c) How much more must you pay each month? (d) How much less will you pay in total interest? Select one: A. (a) $222 (b) $508 (c) $362 more per month (d) $984 less in total interest B. (a) $231 (b) $604 (c) $361 more per month; (d) $1212 less in total interest C. (a) $222 (b) $1492 (c) $362 more per month (d) $984 less in total interest D. (a) $231 (b) $1816 (c) $361 more per month; (d) $1212 less in total interest

The correct answer is: (a) $222 (b) $1492 (c) $362 more per month (d) $984 less in total interest

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. Suppose that your gross annual income is $96,000. (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 65% of the maximum amount you can afford, what is the maximum amount you should spend each month for all other debt? Select one: A. (a) $26,880; (b) $34,560; (c) $17,088 B. (a) $2240; (b) $2880; (c) $368 C. (a) $2240; (b) $2880; (c) $1456 D. (a) $2240; (b) $2880; (c) $1424

The correct answer is: (a) $2240; (b) $2880; (c) $1424

Express the percent as a decimal. 2 and3/4% Select one: A. 2.75 B. 0.0287 C. 2.87 D. 0.0275

The correct answer is: 0.0275

Express the percent as a decimal. 51.3% Select one: A. 0.0513 B. 0.513 C. 5.13 D. 0.403

The correct answer is: 0.513

The circle graph shows the total number of speeding tickets given out in one month in a 10-city area. What percent of the total tickets were given out in Burnside? Round to the nearest percent. burnside 80 other nine cities 590 Select one: A. 14% B. 0.14% C. 12% D. 0.12%

The correct answer is: 12%

70 is what percent of 50? Select one: A. 1.4% B. 140% C. 14% D. 1400%

The correct answer is: 140%

What number is 32% of 48? Select one: A. 1.536 B. 15.36 C. 1536 D. 153.6

The correct answer is: 15.36

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. P = $700.00, A = $729.75, t = 3 months Select one: A. 34% B. 5.5% C. 17.2% D. 17%

The correct answer is: 17%

A dress regularly sells for $117. The sale price is $95. Find the percent decrease of the sale price from the regular price. Select one: A. 23.2% B. 18.8% C. 431.8% D. 81.2%

The correct answer is: 18.8%

What percent of 140 is 37.8? Select one: A. 27% B. 2.7% C. 0.27% D. 270%

The correct answer is: 27%

21 is 6% of what number? Select one: A. 3500 B. 126 C. 350 D. 35

The correct answer is: 350

A passbook savings account has a rate of 6%. Find the effective annual yield if the interest is compounded monthly. Select one: A. 6.2% B. 6% C. 6.3% D. 6.1%

The correct answer is: 6.2%

Write the decimal as a percent. 0.658 Select one: A. 0.658% B. 65.8% C. 0.0658% D. 658%

The correct answer is: 65.8%

Express the fraction as a percent. 57/80 Select one: A. 1.4 % B. 71.25 % C. 14.04 % D. 7.13 %

The correct answer is: 71.25 %

Write the decimal as a percent. 71 Select one: A. 7.1% B. 7100% C. 0.71% D. 3550%

The correct answer is: 7100%

Determine whether the statement is true or false. Liability insurance pays for damage or loss of your car if you are in an accident. Select one: A. True B. False

The correct answer is: False

The price of an item is reduced by 40% of its original price. A week later it is reduced by 10% of the reduced price. The cashier informs you that there has been a total reduction of 50%. Is the cashier using percentages correctly? If not, what is the actual percent reduction from the original price? Select one: A. The cashier is not using percentages correctly. The actual percent reduction from the original price is 46%. B. The cashier is not using percentages correctly. The actual percent reduction from the original price is 25%. C. The cashier is using percentages correctly. D. The cashier is not using percentages correctly. The actual percent reduction from the original price is 54%.

The correct answer is: The cashier is not using percentages correctly. The actual percent reduction from the original price is 46%.

Suppose Carla has $12,000 to invest. Which investment yields the greater return over 2 years: 9% compounded quarterly or 8.85% compounded monthly? Select one: A. They are the same. B. The rate of 9% compounded quarterly is better. C. The rate of 8.85% compounded monthly is better.

The correct answer is: The rate of 9% compounded quarterly is better.

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. Principal: $8000 Rate: 6% Compounded: quarterly Time: 3 years Select one: A. amount in account: $16,097.57; interest earned: $8097.57 B. amount in account: $11,348.15; interest earned: $3348.15 C. amount in account: $9564.95; interest earned: $1564.95 D. amount in account: $8365.43; interest earned: $365.43

The correct answer is: amount in account: $9564.95; interest earned: $1564.95