Question 1

A credit card company charges a customer 1.05% per month on the unpaid balance of charges on the credit card. What is the finance charge in a month when the customer has an unpaid balance of $150.84? Round your answer to the nearest cent.
A) $1.58
B) $0.16
C) $15.84
D) $149.26
E) $152.42

Accepted Answer

The finance charge is calculated as 1.05% of $150.84, which is $150.84 * 0.0105 = $1.58382. Rounded to the nearest cent, this is $1.58.

Question 2

A bank lent Gloria Masters $26,000 at an annual simple interest rate of 9.2%. The period of the loan was 9 months. Find the simple interest due on the loan.
A) $1794
B) $2392
C) $17,940
D) $179
E) $2826

Accepted Answer

We can use the formula for simple interest:

I = PRT

where:

I = interest 
P = principal (amount borrowed) 
R = interest rate (as a decimal) 
T = time (in years)

Since the period of the loan is given in months, we need to convert it to years:

9 months = 9/12 years = 0.75 years

Plugging in the values given, we get:

I = 26000 × 0.092 × 0.75 = $1794

Therefore, the simple interest due on the loan is $1794. So, the best choice is (A).

Question 3

Tomatoes that regularly sell for $1 per pound are on sale for 30% off the regular price. 
a) What is the discount?
b) What is the sale price?
A) a) $0.70 per pound; b) $0.30 per pound
B) a) $0.70 per pound; b) $0.70 per pound
C) a) $0.3 per pound; b) $0.7 per pound
D) a) $0.30 per pound; b) $0.18 per pound
E) a) $0.30 per pound; b) $0.70 per pound

Accepted Answer

The discount is 30% of $1, which is $0.30. The sale price is $1 - $0.30 = $0.70 per pound.

Question 4

A $50 blood glucose monitoring set is on sale at Discount Drugs for 25% off the regular price. What is the discount?
A) $11.2
B) $14.6
C) $16.5
D) $12.5
E) $13.5

Accepted Answer

The discount is calculated as 25% of $50, which is $50 * 0.25 = $12.5.

Question 5

A pharmaceutical company paid a dividend of $2.4 per share. After a reorganization, the company reduced the dividend by 34.5%. 
a. What was the amount of the decrease?
b. What is the new dividend?
A) a.$2.03 b.$1.47
B) a.$0.83 b $1.57
C) a.$0.93 b.$1.37
D) a.$0.63 b.$1.77
E) a.$0.53 b.$1.67

Accepted Answer

The answer of A pharmaceutical company paid a dividend of...

Question 6

The simple interest due on a 30-day loan of $5900 is $84.00. Find the maturity value of the loan.
A) $5846.00
B) $6014.00
C) $5816.00
D) $5984.00
E) $568.93

Accepted Answer

Let the rate of interest be x.
Using the simple interest formula, we have:
SI = P * R * T / 100
84 = 5900 * x * 30 / 100
x = 0.02
The maturity value is given by:
M = P + SI
M = 5900 + (5900 * 0.02 * 30 / 100)
M = $5984.00
Therefore, the answer is D.

Question 7

Cimarron Homes Inc. purchased a snow plow for $50,000 and financed the full amount for 8 years at an annual simple interest rate of 9%. 
a. Find the interest due on the loan.
b. Find the monthly payment.
Round your answer to the nearest cent.
A) a) $36,000; b) $1075.00
B) a) $43,200; b) $895.83
C) a) $36,000; b) $895.83
D) a) $43,200; b) $1075.00
E) a) $895.83; b) $43,200

Accepted Answer

a. The interest due on the loan can be found using the formula I = P * r * t, where P is the principal amount, r is the annual interest rate, and t is the time in years. In this case, P = $50,000, r = 0.09, and t = 8. Therefore, I = 50000 * 0.09 * 8 = $36,000.
b. The monthly payment can be found using the formula:
M = (P + I) / (n * t)
where M is the monthly payment, P is the principal amount, I is the interest due, n is the number of payments per year, and t is the total number of years. In this case, P = $50,000, I = $36,000, n = 12 (since there are 12 months in a year), and t = 8. Therefore, M = (50000 + 36000) / (12 * 8) = $895.83.
Therefore, the best choice is C as it has the correct answers for both parts.

Question 8

A discount clothing store is selling a $70 sport jacket for $22 off the regular price. What is the discount rate?
A) $31 \frac { 3 } { 7 }$ %
B) $32 \frac { 3 } { 7 }$ %
C) $31 \frac { 30 } { 71 }$ %
D) $32 \frac { 30 } { 71 }$ %
E) $31 \frac { 10 } { 23 }$ %

Accepted Answer

The discount rate is calculated as the discount amount divided by the original price, then multiplied by 100 to get a percentage. So, $ \frac{22}{70} \times 100 = 31 \frac{3}{7} $%.

Question 9

Grace Hospital purchased some imaging equipment for $225,000 and financed the full amount at 10 annual simple interest for 4 years. The simple interest on the loan is $78,000. Find the monthly payment.
A) $6302.50
B) $6332.50
C) $5652.50
D) $6412.50
E) $6312.50

Accepted Answer

First, calculate the total amount to be repaid, which includes the principal ($225,000) plus the total interest ($78,000), equaling $303,000. Since the loan is to be repaid over 4 years, with 12 months in each year, the total number of payments is 4 * 12 = 48 months. Dividing the total amount to be repaid ($303,000) by the number of payments (48) gives the monthly payment: $303,000 / 48 = $6312.50.

Question 10

Rosalinda Johnson took out a 3-month, $12,000 loan. The annual simple interest rate on the loan was 8.5%. Find the monthly payment. Round your answer to the nearest cent.
A) $408.50
B) $1021.25
C) $3915.00
D) $4085.00
E) $391.50

Accepted Answer

The answer of Rosalinda Johnson took out a 3-month, $12,000...

Question 11

Action Machining Company purchased a robot-controlled lathe for $180,000 and financed the full amount at 12% annual simple interest for 3 years. The simple interest on the loan is $64,800. Find the monthly payment. Round your answer to the nearest cent.
A) $3200.00
B) $5000.00
C) $1800.00
D) $6800.00
E) $5440.00

Accepted Answer

The answer of Action Machining Company purchased a robot-controlled lathe...

Question 12

A department store employs 1300 people during the holidays. At the end of the holiday season, the store reduces the number of employees by 50%. What is the decrease in the number of employees?
A) 65 employees
B) 975 employees
C) 650 employees
D) 325 employees
E) 1250 employees

Accepted Answer

If the store reduces the number of employees by 50%, it means the number of employees decreases by half. Therefore, 50% of 1300 employees is 650 employees. So the correct answer is C.

Question 13

Shannon O'Hara borrowed $10,000 for 60 days at an annual interest rate of 6.5%. Find the simple interest due on the loan. Assume 365 days in a year. Round your answer to the nearest hundredth.
A) $10.68
B) $650.00
C) $6500.00
D) $1068.49
E) $106.85

Accepted Answer

The simple interest can be calculated using the formula $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount ($10,000), $r$ is the annual interest rate (6.5%, or 0.065 as a decimal), and $t$ is the time the money is borrowed for, in years. For 60 days, $t = \frac{60}{365}$ years. Plugging the values in, $I = 10000 \times 0.065 \times \frac{60}{365} = 106.849315$, which rounds to $106.85.

Question 14

A physician obtained a 10-month loan for $50,000 to buy office equipment at an annual simple interest rate of 8.95%. The simple interest on the loan is $5900. Identify a. the principal, b. the interest, c. the interest rate, and d. the time period of the loan.
A) a. $60,000; b. $6300; c. 10.55%; d. 11 months
B) a. $50,000; b. $5900; c. 8.95%; d. 10 months
C) a. $40,000; b. $6520; c. 7.75%; d. 8 months
D) a. $49,240; b. $5690; c. 11.25%; d. 9 months
E) a. $49,000; b. $6610; c. 10.95%; d. 12months

Accepted Answer

a. The principal is $50,000, which was the loan amount obtained by the physician.
b. The interest is given as $5900, which was the simple interest on the loan.
c. The interest rate is 8.95%, which was the annual simple interest rate charged on the loan.
d. The time period of the loan is 10 months, which is the duration for which the physician obtained the loan. 
Therefore, the best choice is B as it correctly identifies all the given values.

Question 15

Juanita's average monthly expense for gasoline was $80. After joining a car pool, she was able to reduce the expense by 15%. 
a) What was the amount of the decrease?
b) What is Juanita's average monthly gasoline bill now?
A) a) $12.00; b) $34.00
B) a) $6.00; b) $68.00
C) a) $9.00; b) $51.00
D) a) $12.00; b) $68.00
E) a) $6.00; b) $34.00

Accepted Answer

a) To calculate the amount of decrease, we need to find 15% of $80 which is $12. Therefore, the amount of decrease is $12.
b) To find Juanita's average monthly gasoline bill now, we need to subtract the amount of decrease from the original average. $80 - $12 = $68. Therefore, Juanita's average monthly gasoline bill now is $68. Choice D is the only answer choice with both correct answers.

Question 16

The simple interest due on a 2-month loan of $3300 is $560. What is the maturity value of the loan?
A) $3860
B) $2740
C) $3864
D) $1110
E) $3856

Accepted Answer

The maturity value of the loan is the sum of the principal amount ($3300) and the interest ($560), which equals $3860.

Question 17

One credit card company charges 1.3% per month on any unpaid balance, and a second company charges 1.75%. What is the difference between the finance charges that these two companies assess on an unpaid balance of $647.25? Round your answer to the nearest cent.
A) $2.33
B) $0.45
C) $3.05
D) $1.75
E) $2.91

Accepted Answer

The difference in finance charges is calculated by finding the difference between the charges by each company on the unpaid balance. For the first company: $647.25 * 0.013 = $8.41425. For the second company: $647.25 * 0.0175 = $11.326875. The difference is $11.326875 - $8.41425 = $2.912625, which rounds to $2.91.

Question 18

By installing energy-saving equipment, the Pala Rey Youth Camp reduced its normal $1000-per-month utility bill by $450. What percent decrease does this amount represent?
A) 5 $\%$
B) 68 $\%$
C) 23 $\%$
D) 55 $\%$
E) 45 $\%$

Accepted Answer

The percent decrease is calculated by dividing the amount of decrease ($450) by the original amount ($1000) and then multiplying by 100 to convert to a percentage: $\frac{450}{1000} \times 100 = 45\%$.

Question 19

Find the simple interest Jacob Zucker owes on a 6-year student loan of $7000 at an annual interest rate of 6%.
A) $420
B) $252
C) $2520
D) $25
E) $426

Accepted Answer

Simple interest is calculated using the formula I = PRT, where I is the interest, P is the principal amount ($7000), R is the rate (6% or 0.06), and T is the time in years (6). So, I = $7000 * 0.06 * 6 = $2520.

Question 20

A disc player that regularly sells for $400 is selling for 15% off the regular price. What is the discount?
A) $340.00
B) $6.00
C) $60.00
D) $385.00
E) $325.00

Accepted Answer

To find the discount, we need to multiply the regular price by the percentage discount as a decimal: $400 x 0.15 = $60. Therefore, the discount is $60 off the regular price, making the sale price $400 - $60 = $340. Option C is the closest to this answer.

Quiz 6: Applications for Business

A credit card company charges a customer 1.05% per month on the unpaid balance of charges on the credit card. What is the finance charge in a month when the customer has an unpaid balance of $150.84? Round your answer to the nearest cent.

A bank lent Gloria Masters $26,000 at an annual simple interest rate of 9.2%. The period of the loan was 9 months. Find the simple interest due on the loan.

Tomatoes that regularly sell for $1 per pound are on sale for 30% off the regular price. a) What is the discount? b) What is the sale price?

A $50 blood glucose monitoring set is on sale at Discount Drugs for 25% off the regular price. What is the discount?

A pharmaceutical company paid a dividend of $2.4 per share. After a reorganization, the company reduced the dividend by 34.5%. a. What was the amount of the decrease? b. What is the new dividend?

The simple interest due on a 30-day loan of $5900 is $84.00. Find the maturity value of the loan.

Cimarron Homes Inc. purchased a snow plow for $50,000 and financed the full amount for 8 years at an annual simple interest rate of 9%. a. Find the interest due on the loan. b. Find the monthly payment. Round your answer to the nearest cent.

A discount clothing store is selling a $70 sport jacket for $22 off the regular price. What is the discount rate?

Grace Hospital purchased some imaging equipment for $225,000 and financed the full amount at 10 annual simple interest for 4 years. The simple interest on the loan is $78,000. Find the monthly payment.

Rosalinda Johnson took out a 3-month, $12,000 loan. The annual simple interest rate on the loan was 8.5%. Find the monthly payment. Round your answer to the nearest cent.

Action Machining Company purchased a robot-controlled lathe for $180,000 and financed the full amount at 12% annual simple interest for 3 years. The simple interest on the loan is $64,800. Find the monthly payment. Round your answer to the nearest cent.

A department store employs 1300 people during the holidays. At the end of the holiday season, the store reduces the number of employees by 50%. What is the decrease in the number of employees?

Shannon O'Hara borrowed $10,000 for 60 days at an annual interest rate of 6.5%. Find the simple interest due on the loan. Assume 365 days in a year. Round your answer to the nearest hundredth.

A physician obtained a 10-month loan for $50,000 to buy office equipment at an annual simple interest rate of 8.95%. The simple interest on the loan is $5900. Identify a. the principal, b. the interest, c. the interest rate, and d. the time period of the loan.

Juanita's average monthly expense for gasoline was $80. After joining a car pool, she was able to reduce the expense by 15%. a) What was the amount of the decrease? b) What is Juanita's average monthly gasoline bill now?

The simple interest due on a 2-month loan of $3300 is $560. What is the maturity value of the loan?

One credit card company charges 1.3% per month on any unpaid balance, and a second company charges 1.75%. What is the difference between the finance charges that these two companies assess on an unpaid balance of $647.25? Round your answer to the nearest cent.

By installing energy-saving equipment, the Pala Rey Youth Camp reduced its normal $1000-per-month utility bill by $450. What percent decrease does this amount represent?

Find the simple interest Jacob Zucker owes on a 6-year student loan of $7000 at an annual interest rate of 6%.

A disc player that regularly sells for $400 is selling for 15% off the regular price. What is the discount?