Applied Math 3rd Quarter Pre/Post Test

Instructions: DO NOT WRITE ON THIS TEST. DO YOUR BEST.

1) Colin Scott received his charge account statement. It showed a previous balance of $74.22, a finance
charge of $1.11, new purchases of $351.38, a credit for $69.95, and a payment of $175.00. What is the
new balance?

a) $181.76 b) $547.99 c) $398.99 d) $281.76

2) Denise Shelbys account statement. Unpaid balance of $210.94. Periodic rate of 1.85 percent.

i) What is the finance charge?

ii) New purchases of $341.22. What is the new balance?

3) Sports car, base price is $19,015. Options: sport appearance package $1,224, power drivers seat
$246, premium sound system $319, removable hatch roof panels $905, destination charge is $600.
What is the sticker price?

a) $20,330 b) $20,349 c) $22,358 d) $22,309

4) A hatchbacks base price is $10,249. The options total $910. The destination charge is $495. Dealer
pays about 93.5 percent of base price and 77 percent of options. What is the dealers cost?

a) $10,778.52 b) $23,371.16 c) $10,371.20 d) $11,371.16

5) A four-wheel drive vehicle has an average retail price of $14,500. Add $150 for a tilt steering wheel.
Add $700 for air conditioning. Deduct $600 for manual transmission. Deduct $560 for excessive
mileage. What is the average retail price?

a) $12,190 b) $14,190 c) $14,329 d) $19,140

6) Kevin Mahans insurance policy has a $237.20 premium for bodily injury and property damage. The
collision premium is $146. Mahans driver rating factor is 2.7. What is his annual premium?

a) $1,034.64 b) $237.20 c) $383.20 d) $640.44

7) Kim Leung drove a SUV 11,500 miles. Fixed costs totaled $3,343. Variable costs totaled $1,511.

i) What was the total annual cost?

ii) What was the cost per mile?

8) Enrico recently leased a new car. His payments are $658 per month for 60 months. His deposit was
$6,000. He paid $105 title fee and a $80 license fee. What is his total lease cost?

a) $45,665 b) $56,000 c) $39,761 d) $59,718

9) Nydias total cost to rent a car was $400. The number of miles she drove was 1,000. What was the cost
per mile to rent the vehicle?

a) $0.20 b) $0.23 c) $0.40 d) $1.00

10) Home priced at $260,000. Down payment: 30 percent. What is the mortgage loan amount?

a) $182,000 b) $185,000 c) $18,200 d) $1,820

11) Bettys mortgage loan amount is $87,750. She financed her house for 30 years with monthly payments of
$725. At the end of 30 years, what will be the total amount of interest charged?

a) $116,115 b) $173,250 c) $163,500 d) $152,725

12) Sarah and her husband have agreed to purchase a house for $87,500. Washington Savings and Loan is
willing to finance the purchase but require a $5,000 down payment and closing costs of 3 percent of the
amount of the mortgage loan. What are the total closing costs?

a) $5,000 b) $2,475 c) $2,650 d) $3,000

13) Michael Moore obtained a 30-year, $90,000 mortgage with an interest rate of 8 percent. For the first
payment, what is the interest?

a) $400 b) $500 c) $600 d) $700

14) Jerrys new home has an estimated replacement value of $215,000. He has insured his home for 80
percent of its replacement value. What is the amount of coverage on the home?

a) $172,000 b) $127,902 c) $145,900 d) $189,083

Homeowners Insurance Premiums

Annual Premiums for a Typical Homeowners Policy
Fire Protection Class
Amount of
Insurance Brick / Masonry Veneer Wood Frame
Coverage 1-6 7-8 9 10 11 1-6 7-8 9 10 11
$ 40,000 $ 166 $ 170 $ 225 $ 237 $ 270 $ 178 $ 183 $ 237 $ 248 $ 285
45,000 173 178 233 244 280 187 191 248 260 298
50,000 178 183 241 254 290 190 195 254 265 304
60,000 191 196 259 273 313 205 211 273 287 328
70,000 213 216 285 299 343 225 231 299 315 360
80,000 241 248 328 343 394 257 265 343 363 415
90,000 268 276 365 384 441 289 296 384 403 464
100,000 298 307 407 426 490 320 329 426 449 515
120,000 354 364 484 508 584 381 391 508 534 614
150,000 459 471 625 657 755 493 506 657 692 794
200,000 616 633 841 884 1,017 662 680 884 931 1,070
250,000 737 754 961 1,021 1,167 780 798 1,021 1,086 1,243
300,000 879 901 1,147 1,218 1,394 931 953 1,218 1,295 1,483
400,000 1,021 1,045 1,331 1,413 1,617 1,067 1,105 1,413 1,504 1,723
500,000 1,309 1,340 1,707 1,812 2,074 1,385 1,418 1,812 1,929 2,209

15) Use the figure above. Benitos home is insured for 90 percent of its $100,000 replacement value. The
home is of wood-frame construction and is rated in fire protection class 8. What is the annual insurance
premium?

a) $296 b) $305 c) $218 d) $673

16) Helgas net pay is $50,963. What is the maximum housing cost she can incur without exceeding FHA
guidelines of 35 percent of net pay?

a) $17,864.32 b) $23,101.25 c) $17,837.05 d) $22,789.00

ANSWER KEY

1) A $181.76

2) i) $3.90 ii) $556.06

3) i) $2.86 ii) $109.76

4) $220.39

5) C $3,429.74

6) D $575.45

7) C $563.50

8) A $43.56

9) B $3,553.11

10) B 12.25%

11) D $22,309

12) A $10,778.52

13) B $14.190

14) A $1,034.64

15) i) $4,854 ii) $0.42 per mile

16) A $45,665

17) $0.40