Mini Bus Math Module 6 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Provide an appropriate response. 1) The range is the difference between the highest and lowest values in a series or group of values. A) True B) False Solve the problem. 2) Calculate the trade discount for 3 chairs if the unit price is $39 and a single trade discount of 6.25% is allowed. Round to the nearest cent. A) $41.44 B) $7.31 C) $2.44 D) $73.13 Provide an appropriate response. 3) A dining room set lists for $7,900.00 and carries a trade discount of 25 percent. Freight (FOB Shipping Point) of $75.00 is not part of the list price. The net price of the dining room set including freight, assuming a cash discount of 4 percent, is: A) $5,763.00 B) $7,975.00 C) $7,659.00 D) $7,656.00 Solve the problem. Round amounts to the nearest cent and percents to the nearest tenth of a percent. 4) The cost of a digital camera is $152. For a special year-end sale the price is marked down 20%. Find the selling price of the camera. A) $30.40 B) $182.40 C) $126.67 D) $121.60 Solve the problem. 5) Juan earns a weekly salary of $820.00 and is nonexempt from FLSA. Last week he worked 53 hours. What are his gross earnings for the week? A) $1160.25 B) $1219.75 C) $1281.25 D) $1279.25 Solve the problem. 6) Irene Farley earns a semimonthly salary of $7714.27. She has a $100 adjustment-to-income flexible benefits package, is married, and claims 4 withholding allowances. Find the federal tax withholding to be deducted from her semimonthly paycheck using the percentage method tables. A) $1350.93 B) $3110.17 C) $1378.93 D) $1528.26 Solve the problem. 7) Find the ordinary interest on a loan of $350 at 12% annually made on July 9 and due October 31. A) $42.00 B) $13.30 C) $363.30 D) $13.18 Provide an appropriate response. 8) Adjusted balance due at maturity refers to: A) the remaining principal after a partial payment has been properly credited B) the final interest payment due at maturity C) the formula based on the U.S. Rule D) the remaining balance due at maturity after one or more partial payments have been made 2 9) Which of the following statements is correct? A) The average daily balance is the same as the average balance. B) An open-end loan disallows additional credit until the initial amount is paid off. C) With open-end loans, an individual makes regular fixed dollar payments for a specified period of time. D) The average daily balance is equal to the sum of the daily balances divided by the number of days in the billing cycle. Solve the problem. 10) Southwest Dry Cleaners believes that it will need new equipment in 5 years. The equipment will cost $26,000. What lump sum should be invested today at 4% compounded semiannually, to yield $26,000? A) $21,329.10 B) $23,531.54 C) $23,649.29 D) $24,611.99 Provide an appropriate response. 11) The future value minus the principal is equal to the compound interest. A) True B) False Solve the problem. 12) Sally Winston is contributing $2800 each year to a Roth IRA. The IRA earns 3.7% per year. How much will she have at the end of 20 years? A) $83,821.21 B) $83,905.21 C) $83,541.21 D) $83,765.21 Provide an appropriate response. 13) Payments into a sinking fund are always made when? A) at the end of each period C) at the beginning of each period 3 B) when the funds are available D) lump sum at the beginning of the sinking fund Solve the problem. 14) Find the current yield of a corporation that reported a dividend of $0.89 and a closing price of $21.93. Round to the nearest tenth of a percent. A) 24.6% B) 4.1% C) 0.4% D) 2.5% 15) Bond Listings Issuer Name Symbol BANK BAN.IOP CAPITAL CAP.GYR CORP P.KM Coupon 4.500% 5.000% 5.800% Rating Moody's/ Maturity S&P/Fitch Last Apr 2021 A2/A/A+ 100.231 Sep 2020 Aa3/AA-/AA- 107.104 Feb 2022 A2/A/A 109.969 Determine the maturity date of a bond issued by Capital. A) Apr 2021 B) Sep 2019 Change 0.518 0.595 2.440 Yield % 4.445 4.351 4.423 C) Sep 2020 D) Feb 2022 Solve the problem. 16) Sarah Fields wants to borrow $121,000 at 6.5% to buy a house. How much interest would she save by going with a 15-year mortgage over a 25-year mortgage? A) $68,752.20 B) $168,940.20 C) $85,595.40 D) $55,321.20 Provide an appropriate response. 17) A method that depreciates the largest amount possible during the first two years is: A) sum-of-the-years-digits B) straight-line C) units-of-production D) double declining balance 4 Find the depreciation for the indicated year using MACRS cost-recovery rates for the properties placed in service at midyear. Round dollar amounts to the nearest cent. 18) Property class 7-year A) $28,976.80 Depreciation year Cost of property 6 $232,000.00 B) $17,098.40 C) $20,694.40 D) $133,632.00 Provide an appropriate response. 19) The specific identification method of inventory valuation is best when used with high volume, low cost items. A) True B) False Solve the problem using the information given in the table and the specific identification inventory method. Round dollar amounts to the nearest cent. 20) Find the total cost of purchases. Date of purchase Beginning inventory June 5 August 5 A) $319.95 Units purchased 35 45 30 Cost per unit $6.31 $6.95 $7.11 B) $746.90 C) $810.45 5 D) $526.05 Solve the problem using the table below. In addition to the base coverage, options can be added including: identity theft/fraud protection-$20/yr; sewer/sump pump backup protection-$75/yr. Extended coverage endorsements include jewelry, watches, and furs-$0.85/$100/year; camera equipment-$1.35/$100/year; computer equipment-$0.95/$100/year; fine art and collectibles-$1.10/$100/year; firearms and accessories-$1.45/$100/year; and portable tools-$3.25/$100/year. 21) Cindy needs a $20,000 renters insurance policy and has selected the $1,000,000 liability with $500 deductible. The insurance company has determined her credit is excellent and has given her the "good" credit rate. If she adds an endorsement to insure $4000 worth of jewelry and the options of identity theft/fraud protection and sewer/sump pump backup protection for her basement, find her annual premium. A) $283.00 B) $399.00 C) $298.00 D) $223.00 Solve the problem. 22) Georgia Huckabee has an adjusted gross income of $101,646 and itemized deductions that total $12,291. Georgia can claim 5 exemptions. What is her taxable income? (One exemption = $3700.) A) $83,146 B) $70,855 C) $40,191 D) $89,355 Solve the problem. Round to the nearest cent. 23) You have agreed to pay $395.87 for a new chaise lounge. The price includes sales tax at a rate of 4.25%. What was the marked price of the chaise lounge and how much tax was paid? A) $277.80; $118.07 B) $383.41; $12.46 C) $376.12; $19.75 D) $379.73; $16.14 Provide an appropriate response. 24) To best measure the liquidity of a business: A) calculate the current ratio B) calculate the leverage ratio C) calculate the working capital D) calculate both the working capital and current ratio 25) A vertical analysis of an income statement shows the ratio of each item on the income statement to the: A) owner's equity B) net sales C) total sales D) total income 6
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