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

Question 2 2. What is the role of a promissory note?

Question 3 3. If the Consumer Price Index shows a number of 140, what is the rough estimate of the percentage inflation since 1982?

Question 4 4. 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 5 5. An electronics item has a price tag of $59. What is the cash price of this item?

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Question 6 6. 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 7 7. An invoice dated November 2 has a net 30 due date of _____ .

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

Question 9 9.

Calculate the monthly payments for a promissory note with these terms.

Amount: $40,000

Payment terms: Monthly

Annual interest rate: 3%

Loan due date: 10 years

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

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Question 11 11. Which of the following is an example of an installment purchase with simple terms?

Question 12 12. The cost of an item is $55.56. Choose the value that produces a markdown.

Question 13 13. Which of the following numbers from the Consumer Price Index shows the least inflation?

Question 14 14.

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 15 15. Which of the following produces a percentage increase?

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

Question 18 18. If an index number is 54 today, which of the following shows that the day after will bring an increase?

Question 19 19. The retail price of a toothbrush is $40. What is the price after a markdown of 30 percent?

Question 20 20. 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 21 21. Which of the following produces a percentage decrease from one year to the next?

Question 22 22. 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 23 23. The manufacturing cost of an item is $15.00. Which of the following produces a markup of 100 percent?

Question 24 24. 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 25 25.

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

Question 27 27.

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

Question 29 29.

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 30 30. 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)?

MEGA Marketing: 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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