Topic Test Answers

Tim has been asked to work over Christmas to meet an order of new water bottles for a client. Tim's hourly wage is $8.00 and he earns double time for holidays. If Tim works a normal 8 hour day on Christmas, and Christmas falls on a Tuesday, what is Tim's base weekly income for the week? (Assume Tim normally works Monday through Friday.)

You put $350 per month in an investment plan that pays an APR of 3.5% compounded monthly. How much will you have after 18 years? Compare this amount to the total deposits made over the time period. Assume an ordinary annuity.

Find the savings plan balance after 24 months with an APR of 2.5% and monthly payments of $400. Assume an ordinary annuity.

Solve the problem. Round to the nearest cent.Jason’s savings account has a balance of $1847. After 5 years, what will the amount of interest be at 6% compounded semiannually?

The National Science Foundation (NSF) offers grants to students who are interested in pursuing a college education. The student must be enrolled full time (12 credit hours or more), and hold a grade point average of 3.8. The NSF will pay $9,500 per year towards tuition for 4 years. The initial amount is placed into an account paying 7.8% compounded annually, and the tuition is drawn from the account until the remaining balance is zero dollars. Determine the initial amount invested by the NSF. Round your answer to the nearest dollar.

Solve the problem. Round to the nearest cent.Andrea’s savings account has a balance of $3668. After 3 years, what will the amount of interest be at 4% compounded quarterly?

Using technology, determine the quarterly payment on a 3 year loan of $13,010 at 5.6% compounded quarterly. Round you answer to the nearest cent.

Solve the problem. Round to the nearest cent.Stan's savings account has a balance of $4706. After 4 years, what will the amount of interest be at 4% compounded quarterly?

A friend creates an IRA (Individual retirement account) with an APR of 6.25%. She starts the IRA at the age of 25 and deposits $50 at the end of each month. How much will her IRA contain when she retires at the age of 65?

Solve the problem. Round to the nearest cent. Brian wants to have $7000 in the bank in 10 years. He deposits $3000 today at 8% interest compounded semiannually,After keeping the money in the bank for 10 years, how much more money will he need to add to his account to reach the desired balance of $7000?

You are planning a trip to Spain in the summer of 2009. You estimate for an entire month in Spain, you will need $7,139.00 (This includes Airfare, room and board, daily expenses, and a Eurail Pass). You save for 7 months and your monthly gross salary is $2770.22. Given that Social Security is 6.2% of your semi-monthly income, Medicare is 1.45% of your semi-monthly income, your monthly expenses are $1,200, and you pay State and Federal taxes in the amount of $52.00 and $101.00 respectively semi-monthly, how much will you have saved up and will you have saved enough to visit Spain in August? Round all your answers to the nearest cent.

At age 35 you start saving for retirement. If your investment plan pays an APR of 6% and you want to have $1.5 million when you retire in 30 years, how much should you deposit monthly? Assume an ordinary annuity.

Find the savings plan balance after 1 year with an APR of 13% and monthly payments of $100. Assume an ordinary annuity.

Using technology, determine the semi-annual payment on a 6 year loan of $19,264 at 7.2% compounded semi-annually. Round you answer to the nearest cent.

Using technology, determine the monthly payment on a 6 year loan of $15,250 at 3.5% compounded monthly. Round your answer to the nearest cent.

Using technology, determine the semi-annual payment on a 3 year loan of $8,561 at 9.1% compounded semi-annually. Round your answer to the nearest cent.

Solve the problem. Round to the nearest cent.Barbara knows that she will need to buy a new car in 3 years. The car will cost $15,000 by then. How much should she invest now at 7%, compounded quarterly, so that she will have enough to buy a new car?