Interest & Purchases 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. The retail price of a toothbrush is $40. What is the price after a markdown of 30 percent?

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

Question 3 3. 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 4 4. The cost of an item is $55.56. Choose the value that produces a markdown.

Question 5 5. Which of the following produces a percentage increase?

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Question 6 6. 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 7 7. If an invoice is dated 8 October, what is the EOM due date?

Question 8 8. 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 9 9. An invoice dated November 2 has a net 30 due date of _____ .

Question 10 10. 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?

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Question 11 11. Calculate the effective annual rate for an interest rate of 10 percent with calculations done on a monthly basis:

Question 12 12. What does EOM mean?

Question 13 13. 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)?

Question 14 14. Which of the following produces a percentage decrease from one year to the next?

Question 15 15.

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

Question 17 17. The manufacturing cost of an item is $15.00. Which of the following produces a markup of 100 percent?

Question 18 18. Calculate the effective annual rate for an interest rate of 10 percent calculated quarterly (4 times a year):

Question 19 19. In reference to a due date, what does 5/10 mean?

Question 20 20.

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 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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