# AMU MATH 125 Test Week 3 answers

## AMU MATH 125 Test Week 3 question 1

A dress was reduced from \$75 to \$50. Find the percent of the reduction in price.

A.33%

B.12%

C.50%

D.80%

## AMU MATH 125 Test Week 3 Question 2

The average teachers’ and superintendents’ salaries for a school district was \$40,207. Ten years later, the new average was \$52,746. Find the percent increase to the nearest tenth of a percent.

A.31.2%

B.3.1%

C.15.6%

D.6.2%

## AMU MATH 125 Test Week 3 Question 3

Find the missing value: Principal \$21,700; Rate: 17%; Time: ____; Simple Interest: \$9,222.50

A.2 years

B.2.5 years

C.3.5 years

D.3 years

## AMU MATH 125 Test Week 3 Question 4

Find the missing value: Principal \$23,100; Rate: _____; Time 2 years; Simple Interest: \$2,310

A.5%

B.4.5%

C.4%

D.5.5%

## AMU MATH 125 Test Week 3 Question 5

Find the future value of the loan. P = \$13,900, r = 2%, t = 3 years

A.\$14,734.00

B.\$13,275.71

C.\$14,750.79

D.\$13,260.60

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## AMU MATH 125 Test Week 3 Question 6

Dr. Sand borrowed some money to buy new furniture for his office. He paid \$338.00 simple interest on a 6.5-year loan at 4%. Find the principal.

A.\$1,450

B.\$1,300

C.\$1,200

D.\$1,400

## AMU MATH 125 Test Week 3 Question 7

Find the compound interest: Principal \$1,300; Rate 12.5%; Compounded Semiannually; Time 8 years.

A.\$2,119.20

B.\$2,129.31

C.\$2,132.45

D.\$2,127.16

## AMU MATH 125 Test Week 3 Question 8

Find the future value of an annuity if you invest \$950 semiannually for 5 years at 6.5% compounded semiannually.

A.\$10,996.66

B.\$11,117.03

C.\$11,016.91

D.\$11,067.41

## AMU MATH 125 Test Week 3 Question 9

In order to help pay for college, the grandparents of a child invest \$2,850 in a bond that pays 5% interest compounded semiannually. How much money will there be in 5.5 years?

A.\$3,789.95

B.\$3,719.20

C.\$3,739.45

D.\$3,839.57

## AMU MATH 125 Test Week 3 Question 10

As part of his retirement planning, Mr. Martin purchases an annuity that pays 8.5% compounded semiannually. If the semiannual payment is \$9,500, how much will Mr. Martin have saved in 4 years?

A.\$88,298.50

B.\$88,418.87

C.\$88,369.25

D.\$88,318.75

## AMU MATH 125 Test Week 3 Question 11

Suppose you plan to work right after you graduate, but still save money for graduate school. You decide to save \$35,000 before starting, and find a weekly annuity that pays 6% interest for 2 years. How much will you need to pay each week?

A.\$348.64

B.\$285.25

C.\$396.18

D.\$316.94

## AMU MATH 125 Test Week 3 Question 12

Joan purchased a refrigerator for \$600. She made a down payment of \$80 and paid \$61 a month for 9 months. Find the total installment price of the refrigerator.

A.\$629.00

B.\$585.00

C.\$638.00

D.\$647.00

## AMU MATH 125 Test Week 3 Question 13

Stephen purchased a diamond engagement ring for \$3,000. His down payment was \$2000, and he made 24 monthly payments of \$46.15. Find the APR from the table below.

A.10.5%

B.10%

C.11%

D.9.5%

## AMU MATH 125 Test Week 3 Question 14

Harry had an unpaid balance of \$2,320.00 on his credit card statement at the beginning of February. He made a payment of \$160.00 during the month. If the interest rate on Harry’s credit card was 11% per month on the unpaid balance, find the finance charge and the new balance on March 1.

A.Finance charge = \$259.31; new balance = \$2,419.31

B.Finance charge = \$265.34; new balance = \$2,425.34

C.Finance charge = \$255.20; new balance = \$2,415.20

D.Finance charge = \$253.31; new balance = \$2,413.31

## AMU MATH 125 Test Week 3 Question 15

Amanda’s credit card statement showed these transactions during December.

Dec 1               Previous balance         \$228.11

Dec 12             Purchases                    \$354.78

Dec 18             Purchases                     \$86.13

Dec 27             Payment                       \$80.00

The interest rate is 10% per month on the average daily balance. Find the average daily balance, the finance charge for the month, and the new balance on January 1. [Hint: Remember that December has 31 days.]

A.Average Daily Balance = \$482.99; Finance Charge = \$48.30; New Balance = \$637.32

B.Average Daily Balance = \$479.99; Finance Charge = \$38.30; New Balance = \$629.32

C.Average Daily Balance = \$480.79; Finance Charge = \$47.00; New Balance = \$630.32

D.Average Daily Balance = \$472.99; Finance Charge = \$46.30; New Balance = \$630.32

## AMU MATH 125 Test Week 3 Question 16

A house sells for \$312,500 and a 20% down payment is made. A 30-year mortgage at 7% was obtained. Find the monthly payment and the total interest paid.

A.Monthly payment = \$1,671.61; total interest paid = \$351,779.60

B.Monthly payment = \$1,762.49; total interest paid = \$384,496.40

C.Monthly payment = \$1,662.50; total interest paid = \$348,500.00

D.Monthly payment = \$1,654.35; total interest paid = \$345,566.00

## AMU MATH 125 Test Week 3 Question 17

A small restaurant was purchased for \$407,000 with no down payment and a 6% loan for 20 years. Find the monthly payment.

A.\$2,915.87

B.\$2,332.70

C.\$3,207.46

D.\$2,624.29

## AMU MATH 125 Test Week 3 Question 18

A house has a \$130,000.00 mortgage at 6.5%. The monthly payments are \$1,132.30.  Compute an amortization schedule for the first three months.

Payment Number       Interest           Payment on Principal  Balance of Loan

1

2

3

A.

B.

C.

D.

## AMU MATH 125 Test Week 3 Question 19

What was the highest price that the stock sold for during the last 52 weeks?

52 WK

A.\$43.84 per share

B.\$61.64 per share

C.\$64.84 per share

D.\$63.24 per share

## AMU MATH 125 Test Week 3 Question 20

What was the lowest price that the stock sold for during the last 52 weeks?

A.\$44.22 per share

B.\$66.79 per share

C.\$41.87 per share

D.\$46.57 per share

## AMU MATH 125 Test Week 3 question 21

What was the amount of the dividend per share that the company paid last year?

A.\$1.88 per share

B.\$160.35 per share

C.\$119.29 per share

D.\$87.63 per share

## AMU MATH 125 Test Week 3 Question 22

Find the annual earnings per share.

A.\$7.68

B.\$8.53

C.\$10.40

D.\$7.59

## AMU MATH 125 Test Week 3 Question 23

If an investor had 387 shares of stock last year how much in dividends did the investor receive?

A.\$1478.34

B.\$739.17

C.\$2217.51

D.\$2956.68

## AMU MATH 125 Test Week 3 Question 24

If you purchase 1,013 shares of stock at the closing price and the broker’s commission is 2.1%, find the total cost of the purchase.

A.\$49,983.04

B.\$44,984.74

C.\$52,127.36

D.\$46,914.62

## AMU MATH 125 Test Week 3 Question 25

What was the closing price of the stock the day before yesterday?

A.\$72.53

B.\$59.96

C.\$62.58

D.\$48.85

## AMU MATH 125 Test Week 3 Question 26

If the closing price of a stock is \$46.02 and the annual earnings per share is \$0.18, find the P/E ratio.

A.255.67

B.8.28

C.230.10

D.9.11

## AMU MATH 125 Test Week 3 Question 27

The closing price of a stock is \$67.43 and the annual earnings per share is \$2.48, find the P/E ratio.

A.183.95

B.24.47

C.167.23

D.27.19

## AMU MATH 125 Test Week 3 Question 28

If the closing price of a stock is \$18.71 and the P/E ratio is 16, find the annual earning per share.

A.\$269.42

B.\$1.05

C.\$299.36

D.\$1.17

## AMU MATH 125 Test Week 3 Question 29

If the closing price of a stock is \$22.8 and the P/E ratio is 13, find the annual earnings per share.

A.\$1.58

B.\$1.75

C.\$296.40

D.\$326.04

## AMU MATH 125 Test Week 3 Question 30

An investor purchased 700 shares of stock for \$30.81 per share and sold them later for \$33.49 per share. The broker’s commission was 1% of the purchase price and 1% of the selling price. Find the amount the investor made on the stock.

A.\$1,425.90

B.\$1,857.24

C.\$–1,425.90

D.\$–1,283.31