Open University of Hong Kong MATHS201F Finite Mathematics for Business MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers the question. Use I = Prt for simple interest to find the indicated quantity. 1)

P= $22,660; r = 13%; 2.4 years. Find I.

1)

_______ A)

$15,590.08

B) $7069 .92

$29,729.92

D) $2945 .80 2 )

I = $750; r = 6%; t =6 months. Find P.

2)

_______ A)

$22.50

B)

$25,750

C)

$24,250

D) $ 2 ,

0 0 Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent. 3)

John Lee's savings account has a balance of $ 4158. After 24 months, what will the amount of interest be at 5.9% per year?

3)

_______ A)

$ 490.64

B)

$ 245.32

C)

$ 269.33

D) $ 1 3 2 5 Solve the problem. 4)

The State Employee s' Credit Union offers a 1year certificate of deposit with an APY (or effective rate) of 5.5%. If interest is compoun ded quarterly, find the actual interest rate. Round to the nearest tenth of a percent.

4)

_______ A)

6.4%

B)

5.1%

C)

5.6%

D) 5. 4 SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 5)

An economy is based on two sectors, agricultur e and manufact uring. Productio n of a dollar's worth of agricultur e requires an input of $0.40 from agricultur e and $0.10 from manufact uring. Productio n of a dollar's worth of manufact uring requires an input of $0.20 from agricultur e and $0.30 from manufact uring. Find the output for each sector that is needed to satisfy a final demand of $16 billion for agricultur e and $32 billion for manufact uring.

5)

______ _______ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Solve the problem. Round to the nearest cent as needed. 6)

Samantha 's savings account has a balance of $4643. After 25 years, what will the amount of interest be at 6% compoun ded annually?

6)

_______ A)

$15,275.16

B) $15,2 84.16

$15,289.16

D) $2785 .80 7 )

Brandon's savings account has a balance of $4069. After 4 years what will the amount of interest be at 5% compoun ded quarterly?

7)

_______ A)

$899.73

B)

$894.73

C)

$101.73

D) $ 8 5 7 3 Find the future value of the ordinary annuity. Interest is compounde d annually, unless otherwise indicated. 8)

PMT = $7,500, i = 7% interest compoun ded semiannu ally for 5 years

8)

_______ A)

$ 140,442.43

B) $

77,763.72

$ 87,985.45

D) $

302,271.16

Find the periodic payment that will render the sum. 9 )

FV = $ 44,000, interest is 8% compoun ded monthly, payments made at the end of each month for 3 years

9)

_______ A)

$ 1085.47

B) $

3534.16

$ 2318.58

D) $

13,025.61

Find i (the rate per period) and n (the number of periods) for the loan at the given annual rate. 1 0)

Annual payments of $378.80 are made for 8 years to repay a loan at 6.4% compoun ded annually.

10)

______ A)

i = 0.00533; n = 12

B) i =

0.064; n =

i = 0.008; n = 8

D) i = 1

0.064; n =

8 1)

Quarterly Payments of $3000 are made for 4 years to repay a loan at 10.2% compoun ded quarterly.

11)

______ A)

i = 0.102; n = 16

B) i =

0.0255; n =

i = 0.0255; n = 16

D) i =

0.006375; n

1 )

B 2 )

D 3

A ) 4 )

D 5)

$44 billion agriculture, $52 billion manufacturing 6)

B 7)

B 8)

C 9)

A 10)

D 11)