Interest & Purchases: Help and Review 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!

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Question 1 1. Calculate the effective annual rate for an interest rate of 10 percent calculated quarterly (4 times a year):

Question 2 2.

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

Question 4 4. If an index number is 54 today, which of the following shows that the day after will bring an increase?

Question 5 5. If the Consumer Price Index shows a number of 140, what is the rough estimate of the percentage inflation since 1982?

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Question 6 6. The cost of an item is $55.56. Choose the value that produces a markdown.

Question 7 7. An invoice is dated March 12. What is the 2/10 due date for this invoice?

Question 8 8. Under which of these plans would you end up paying the most over 12 months?

Question 9 9. Which of the following is an example of an installment purchase with simple terms?

Question 10 10.

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?

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Question 11 11. A deferred payment plan wants you to make 12 monthly payments to pay off an item that costs $500. What is the basic monthly payment before interest is included?

Question 12 12. An electronics item has a price tag of $59. What is the cash price of this item?

Question 13 13. A car costs $24,000. The installment purchase has terms of annual payments for 5 years with an interest of 3 percent. What is the yearly payment?

Question 14 14. 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 15 15. 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)?

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Question 16 16. In this formula, what does the r stand for?

Question 17 17. The cost to manufacture a hair clip is $0.50. With a markup of 200 percent, what is the selling price of this hair clip?

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

Question 19 19.

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

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Question 21 21. 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?

Question 22 22. The manufacturing cost of an item is $15.00. Which of the following produces a markup of 100 percent?

Question 23 23. What does EOM mean?

Question 24 24. 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 25 25. The following are some index numbers from the Dow Jones Industrial Average. Which year did businesses in the US do best?

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Question 26 26. Your beginning balance is $1200. With an APR of 12 percent, what is your balance at the end of the year if calculations are done on a monthly basis?

Question 27 27. What is the role of a promissory note?

Question 28 28. Which of the following is an example of a real-world index number?

Question 29 29. Which of the following numbers from the Consumer Price Index shows the least inflation?

Question 30 30.

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?

Interest & Purchases: Help and Review 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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