Topic Test Answers

Solve the problem. Round to the nearest cent.Stan’s savings account has a balance of $2257. After 5 years, what will the amount of interest be at 10% compounded quarterly?

Your company has recently won a bid for a building contract. Your company has promised the client that the project will be finished in one month. Because of the short deadline, mandatory overtime is initiated company wide. If you make $16.00 an hour and a normal work week is 40 hours per week, determine your gross pay for the month you will be working on the project given that you are required to work 50 hours a week, and you earn time and a half for overtime.

You want to purchase a new car in 3 years and you anticipate the cost of the car to be $25,000. You are given an investment plan with a fixed APR of 5.3% if you make regular monthly deposits. How much should you deposit at the end of each month to reach your goal of $25,000 in 3 years?

Using technology, determine the quarterly payment on a 4 year loan of $16,231 at 5.1% compounded quarterly. Round your answer to the nearest cent.

The Academy for Academic Excellence has just announced their winner for the most successful student in mathematics. This student will receive a grant for their college education as well as national recognition for academic excellence in the field of mathematics. The grant will cover $12,177.17 of the cost of school per year for 5 years. If the initial amount is invested into an account over the five years, paying an annual interest rate of 5.5%, and you are to withdraw from this account until the remaining balance after the 5 years is zero dollars, determine the initial amount of the grant. Round your answer to the nearest dollar.

Suppose that a family wants to start a college fund for their child. If you can get an APR of 7.5% and want the fund to have a value of $75,000 after 18 years, how much should you deposit monthly? Assume an ordinary annuity.

You are an advertising sales agent for the multimedia firm Mevision. Besides receiving an annual salary, you earn a 3% commission on sales. If you sell $15,625 worth of advertising for the month of May, what will your commission be for the month of May?

In the Present Value of an Ordinary Annuity formula, what does the n represent?

Solve the problem. Round to the nearest cent.Walter's savings account has a balance of $273. After 5 years, what will the amount of interest be at 5% compounded quarterly?

As part of your retirement plan, you want to set up an annuity in which a regular payment of $80,121 is made at the end of each year. You need to determine how much money must be deposited earning 10% compounded annually in order to make the annuity payment for 20 years. Round your answer to the nearest cent.

You have decided to purchase a car for $22,346.16. The credit union requires a 10% down payment and will finance the balance with a 5.4% annual interest loan for 36 months. The sales tax in your city is 7.6%, and the license and title charges are $125.13. Determine the amount that the credit union will finance you for. Round your answer to the nearest cent.

You just received a raise after working for your company for a year. Your new hourly wage is $12.50. If you are paid biweekly and you work a normal 40 hour week, what is your base salary per pay period?

You have caught a bad cold and have to take time off of work to get well. Each week you normally work 8 hours a day for 5 days at $15.00 per hour. If you take a day to get well by not going to work and your pay period is every two weeks, how much less will your next paycheck be given that you miss a day?

What is the first step when solving present or loan amortization using a formula?

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.

You put $300 at the end of each month in an investment plan that pays an APR of 7%. How much will you have after 18 years? Compare this amount to the total deposits made over the time period.

How is the total price including sales tax calculated?

Google has just purchased your website that reviews GPS systems. You made a profit of $65,000. You would like to invest the $65,000 into an account that pays you an annual compounded interest rate of 5.5%. You want to make annual withdrawals over the next 10 years such that by the end of this 10 year period, the amount remaining in the account will be zero dollars. Determine, from the given information, the amount of the annual withdrawals. Round your answer to the nearest cent.