1. Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6 1/2% for 30 years. By using the table in the handbook, his monthly payment is __________.
$1,319.04
$1,319.40
$1,216.80
$1,139.40
2. Given the following: FIFO method – 16 units left in inventory
Jan. 1 Beginning inv 9 units at $105 = $ 945
Apr. 13 Purchased 14 units at $120 = $1,680
Sep. 17 Purchased 20 units at $130 = $2,600
Ded. 10 Purchased 14 units at $140 = $1,960
The cost of goods sold is __________.
$5,000
$10,000
$4,965
$5,225
3. Given: Sales $80,000, beginning inventory $5,000, Purchases $21,800, Purchase discounts $790, and Ending Inventory $5,100. The cost of merchandise sold from the following is __________.
$21,560
$20,190
$20,910
$21,650
4. The country of Blue needs $800,000 from property tax to meet its budget requirements. The total value of assessed property in Blue is $140,000,000. What is the tax rate of Blue in mills to nearest hundredth? (Be sure to round tax rate to nearest hundred thousandths before converting to mills.)
5.72
57.24
571.24
17.50
5. Angel Hart bought 190 shares of a mutual fund with a NAV of $14.10. This fund also has a load charge of 6 3/4%. What did Angel pay for the investment?
$2,697.00
$2,859.50
$2,895.00
$2,679.00
6. Given interest of $11,900 at 6% for 50 days (ordinary interest), one can calculate the principal as __________.
$1,428,005.70
$4,128,005.70
$1,428,05.70
$1,420.70
7. A truck costs $8,000 with a residual value of $1,000. The truck is expected to have a useful life of 70,000 miles. By assuming the truck is driven 15,000 miles the first year, what would the depreciation expense would be?
$1,714
$1,500
$1,174
$1,505
8. The difference between the monthly payments on a $120,000 home at 6 1/2% versus 8% for 25 years is __________. (Use the table in the handbook.)
$81.12
$151.02
$115.20
$91.12
9. Assume the mean useful life of a particular light bulb is 2,000 hours and is normally distributed with a standard deviation of 300 hours. The useful life of light bulbs within two standard deviations of the mean is __________.
between 1,700 and 2,300 hours
longer than 2,300 hours
longer than 1,700 hours
between 1,400 and 2,600 hours
10. 9.1% of a circle graph represents __________.
32.76 degrees
37.26 degrees
42 degrees
45 degrees
11. Today the price of a Jeep is $25,000. In 1970 the price was $5,000. What is the price relative?
Answer
600
166
500
400
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