BUS 101 Final Review, CAC

Chapter 19 Calculate the actual sales since the sales and sales tax were rung up together. Assume sales tax of 6% and total sales of $26,000. (Round your answer to the nearest cent.) Actual sales: $...

Actual sales: $24,528.30

Bill Shass pays a property tax of $3,200. In his community, the tax rate is 50 mills. What is Bill's assessed value? (Do not round intermediate calculations.) Assessed value: $...

Assessed value: $64,000 Explanation: A mill is 1/10 of a cent or 1/1,000 of a dollar (0.001). Mills × 0.001 × A = $3,200 50 × 0.001 × A = $3,200 0.05A = $3,200 A= $64,000

Chapter 13 You decide to reduce the amount you spend eating out by $150 a month and invest the total saved at the end of each year in your retirement account. How much will the account be worth at 5% in 15 years? (Use Table 13.1.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Future value after 15 years: $38,841.30 Explanation: Periods = 15 × 1 = 15 Interest rate per period = 5% / 1 = 5% $150 × 12 = $1,800 $1,800 × 21.5785 = $38,841.30

Chapter 13 Alice Longtree has decided to invest $400 quarterly for 4 years in an ordinary annuity at 8%. As her financial adviser, calculate for Alice the total cash value of the annuity at the end of year 4. (Use Table 13.1.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Future value: $7,455.68 Explanation: 4 years × 4 = 16 periods 8% / 2= 2% 16 periods, 2% $400 × 18.6392 = $7,455.68

Chapter 10 Leslie Hart borrowed $15,000 to pay for her child's education at Riverside Community College. Leslie must repay the loan at the end of 9 months in one payment with 5 1/2 % (5.5%) interest. a. How much interest must Leslie pay? (Do not round intermediate calculation. Round your answer to the nearest cent.) Interest: b. What is the maturity value? (Do not round intermediate calculation. Round your answer to the nearest cent.) Maturity value:

Interest: 618.75 Maturity Value: 15,618.75

Chapter 13 John Regan, an employee at Home Depot, made deposits of $800 at the end of each year for 4 years. Interest is 4% compounded annually. What is the value of John's annuity at the end of 4 years? (Use Table 13.1.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

John's annuity: $3,397.20 Explanation: 4 years × 1 = 4 periods 4% / 1= 4% 4 periods, 4% $800 × 4.2465 = $3,397.20

Chapter 12 Lynn Ally, owner of a local Subway shop, loaned $40,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Lynn at the end of 8 years with 6% interest compounded semiannually. How much will Lynn receive at the end of 8 years? (Use Table 12.1) (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

Lilly will receive: $64,188 Explanation: 8 years × 2 = 16 periods 6% / 2 = 3% $40,000 × 1.6047 = $64,188

Chapter 10 On April 5, 2015, Janeen Camoct took out an 8 1/2% (8.5%) loan for $20,000. The loan is due March 9, 2016. Use ordinary interest to calculate the interest. What total amount will Janeen pay on March 9, 2016? (Ignore leap year.) (Use Days in a year table.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Maturity value:

Maturity value $21,596.11 Explanation: 365 - 95(April 5) 270 days + 68 (March 9) 338 days $20,000 ×0.085 ×338= $1,596.11360 MV = P + I = $20,000 + $1,596.11 = $21,596.11

Calculate the mean: $1,001, $68.50, $33.82, $581.95. (Round your answer to the nearest hundredth.) Mean: $...

Mean: $421.32 Explanation: $1,685.27 / 4 = $421.32

Chapter 14 Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.). (Use 13% for table lookup.). (Use the loan amortization table) (Round your answers to the nearest cent.) Purchase price of a used car: $5,673 Down payment: $1,223 Number of monthly payments: 48 Amount financed: $4,450 Total of monthly payments: $5,729.76 Total finance charge: $1,279.76 APR: 13% Monthly Payment By Table: ??? By Formula: ???

Monthly Payment By Table: 119.39 By Formula: 119.37

Chapter 14 Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in Colorado Springs. He was offered a $56,000 loan at 5% for 48 months. What is his monthly payment by formula? Monthly payment: ???

Monthly Payment: $1,400 Explanation: $56,000 × 0.05 × 4 = $11,200 interest $11,200 + $56,000 / 48 = $1,400

Chapter 15 CNBC.com reported mortgage applications dropped in March 2015 due to an increase in the rate on 30-year fixed rate mortgages to an average of 4.01%. Dennis Natali wants to purchase a vacation home for $235,000 with 20% down. Calculate his monthly payment for a 20-year mortgage at 3.5%. Calculate total interest. (Use Table 15.1.) (Do not round intermediate calculations. Round your final answers to the nearest cent.) Monthly payment: $ Total interest: $

Monthly payment: $1,090.40 Total interest: $73,696.00 Explanation: $235,000 × 0.20 = $47,000 down $235,000 − $47,000 = $188,000 mortgage 188 × $5.80 = $1,090.40 payment $1,090.40 × 240 = $261,696 − $188,000 = $73,696.00 total interest

Chapter 15 Oprah Winfrey has closed on a 42-acre estate near Santa Barbara, California, for $50,000,000. If Oprah puts 20% down and finances at 7% for 30 years, what would her monthly payment be? (Use Table 15.1.) (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Monthly payment: $...

Monthly payment: $266,400 ± 1 Explanation: $50,000,000 × 0.20 = $10,000,000 down payment $50,000,000 − 10,000,000 = $40,000,000 mortgage payment $40,000,000/$1,000 = 40,000 × $6.66 = $266,400 monthly payment

Chapter 12 Complete the following amortization chart by using Table 15.1. (Round your answers to the nearest cent.) Selling price of home: $ 190,000 Down payment: $ 50,000 Principal (loan): $ ??? Rate of interest: 7% Years: 35 Payment per $1,000: ??? Monthly mortgage payment: ???

Principal: $140,000 Payment per $1,000: 6.39 Monthly Mortgage Payment: $894.60

Use the following table: Value: Frequency: 4 7 8 3 2 9 4 2 Find the weighted mean. (Round your answer to the nearest tenth.) Weighted mean: ???

Weighted mean: 3.7 Explanation: Value: Frequency: Product: 4 7 28 8 3 24 2 9 18 4 2 8 TOTAL: 21 78 78 / 21= 3.7