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Interest & Purchases: Business Math Lesson Plans Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. The cost of an item is $55.56. Choose the value that produces a markdown.

Question 2 2. Which of the following is an example of a real-world index number?

Question 3 3. If an index number is 54 today, which of the following shows that the day after will bring an increase?

Question 4 4.

A used car dealer has the following information for two months of sales:

Month 1: 239 cars sold

Month 2: 324 cars sold

What is the percentage change?

Question 5 5. Purchasing an item now and agreeing to pay for it in a series of future payments is known as a/an _____.

Page 2

Question 6 6. Which of the following produces a percentage decrease from one year to the next?

Question 7 7. A mother bunny produced 20 baby bunnies last year. This year, she only produced 18 baby bunnies. How much is our percentage increase or decrease?

Question 8 8.

A used car dealer has the following information for two months of sales:

Month 1: 239 cars sold

Month 2: 324 cars sold

Do we have an increase or a decrease and by how many cars?

Question 9 9. Calculate the effective annual rate for an interest rate of 10 percent with calculations done on a monthly basis:

Question 10 10. What does n equal in the formula for the effective annual rate if the calculations are done on a quarterly basis (4 times a year)?

Page 3

Question 11 11. What is the role of a promissory note?

Question 12 12. Which of the following is an example of an installment purchase with simple terms?

Question 13 13.

A deferred payment plan for an item that costs $800 has 12 monthly payments with an interest of 15 percent. However, if the item is paid in full within the first 6 months, then there will be no interest.

Which of the following scenarios will cost you the least in the long run?

Question 14 14. The stated interest rate from credit card companies is based on how many calculations per year?

Question 15 15. In reference to a due date, what does 5/10 mean?

Page 4

Question 16 16. If an invoice is dated 8 October, what is the EOM due date?

Question 17 17.

For this problem, what number would you plug into L?

A car costs $30,000. The installment purchase has terms of monthly payments for 7 years with an annual interest of 4 percent.

Question 18 18. The retail price of a toothbrush is $40. What is the price after a markdown of 30 percent?

Question 19 19. Adriana bought a bicycle at $300 on a deferred payment plan with an annual interest rate of 20 percent and 12 monthly payments. Calculate her repayment for the first month.

Question 20 20. For a promissory note with monthly payments and an annual interest rate of 6 percent, what is the monthly interest rate that you need to use in this formula?

Page 5

Question 21 21.

For this problem, what number would you plug into n?

A car costs $30,000. The installment purchase has terms of monthly payments for 7 years with an annual interest of 4 percent.

Question 22 22. Which of the following produces a percentage increase?

Question 23 23. In this formula, what does the r stand for?

Question 24 24. An electronics item has a price tag of $59. What is the cash price of this item?

Question 25 25. An invoice dated November 2 has a net 30 due date of _____ .

Page 6

Question 26 26. Under which of these plans would you end up paying the most over 12 months?

Question 27 27. If the Consumer Price Index shows a number of 140, what is the rough estimate of the percentage inflation since 1982?

Question 28 28. A promissory note for a loan amount of $45,000 has monthly payments of $412.37 for 10 years. What is the total amount paid at the end when the loan is paid off?

Question 29 29. A retail store produces an item at a cost of $5.00. The markup on this item is 100 percent. Then it has a markdown of 10 percent. What is the final cost of this item?

Question 30 30. An invoice is dated March 12. What is the 2/10 due date for this invoice?

Interest & Purchases: Business Math Lesson Plans Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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