# AMU MATH 125 Test Week 5 answers

## AMU MATH 125 week 5 test Question 1

Express 0.05 as a percent.

A.0.05%

B.0.0005%

C.5%

D.0.5%

## AMU MATH 125 week 5 test Question 2

A coat was reduced from \$500 to \$425. Find the percent of the reduction in price.

A.17.5%

B.15%

C.10%

D.25%

## AMU MATH 125 week 5 test Question 3

The average teachers’ and superintendents’ salaries for a school district was \$40,966. Eight years later, the new average was \$53,236. Find the percent increase to the nearest tenth of a percent.

A.15.0%

B.7.5%

C.3.7%

D.30.0%

## AMU MATH 125 week 5 test Question 4

The total real estate commission for a real estate company was \$25 million in 2008, an increase of \$1 million over the year 2004. What was the percent increase? Round answer to the nearest tenth of a percent.

A.3.8%

B.4.2%

C.4.6%

D.2.1%

## AMU MATH 125 week 5 test Question 5

Find the missing value: Principal \$2,100; Rate: 13.5%; Time: ____; Simple Interest: \$708.75

A.2.5 years

B.3.5 years

C.2 years

D.3 years

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## AMU MATH 125 week 5 test Question 6

Find the missing value: Principal \$14,200; Rate: _____; Time 7 years; Simple Interest: \$19,880

A.20.5%

B.20%

C.19.5%

D.19%

## AMU MATH 125 week 5 test Question 7

Find the missing value: Principal ______; Rate 13.5%; Time 7 years; Simple Interest: \$19,750.50

A.\$21,050

B.\$20,900

C.\$21,000

D.\$20,800

## AMU MATH 125 week 5 test Question 8

Find the future value of the loan. P = \$10,900, r = 3%, t = 8 years

A.\$13,807.79

B.\$12,427.01

C.\$13,516.00

D.\$12,164.40

## AMU MATH 125 week 5 test Question 9

Dr. George borrowed some money to buy new furniture for his office. He paid \$185.63 simple interest on a 5.5-year loan at 1.5%. Find the principal.

A.\$2,250

B.\$2,350

C.\$2,400

D.\$2,150

## AMU MATH 125 week 5 test Question 10

A Motel is converting its rooms into privately owned condominiums. The interest on a \$2,300,000, 20-year construction loan is \$50,000. What is the rate of interest? Does the rate seem unreasonable?

A.2.17%; unreasonable

B.6.09%; reasonable

C.0.11%; unreasonable

D.4.59%; reasonable

## AMU MATH 125 week 5 test Question 11

Find the compound interest: Principal \$2,100; Rate 16%; Compounded Quarterly; Time 5.5 years.

A.\$2,866.72

B.\$2,874.68

C.\$2,876.83

D.\$2,879.97

## AMU MATH 125 week 5 test Question 12

Find the future value of an annuity if you invest \$850 quarterly for 5 years at 1.5% compounded quarterly.

A.\$17,719.59

B.\$17,669.97

C.\$17,599.22

D.\$17,619.47

## AMU MATH 125 week 5 test Question 13

Determine the better investment: 6% compounded monthly or 6.2% compounded semiannually

A.6%, compounded monthly

B.6.2% compounded semiannually

## AMU MATH 125 week 5 test Question 14

In order to help pay for college, the grandparents of a child invest \$2,350 in a bond that pays 8% interest compounded quarterly. How much money will there be in 5 years?

A.\$3,471.73

B.\$3,491.98

C.\$3,592.10

D.\$3,542.48

## AMU MATH 125 week 5 test Question 15

As part of his retirement planning, Mr. Smith purchases an annuity that pays 5% compounded semiannually. If the semiannual payment is \$6,500, how much will Mr. Smith have saved in 7.5 years?

A.\$116,608.02

B.\$116,537.27

C.\$116,557.52

D.\$116,657.64

AMU MATH 125 week 5 test Question 16

Suppose you plan to work right after you graduate, but still save money for graduate school. You decide to save \$10,000 before starting, and find a weekly annuity that pays 7% interest for 4 years. How much will you need to pay each week?

A.\$37.52

B.\$52.11

C.\$45.86

D.\$41.69

## AMU MATH 125 week 5 test Question 17

Joan purchased a refrigerator for \$500. She made a down payment of \$50 and paid \$51 a month for 11 months. Find the total installment price of the refrigerator.

A.\$633.00

B.\$611.00

C.\$622.00

D.\$605.00

## AMU MATH 125 week 5 test Question 18

Stephen purchased a diamond engagement ring for \$3,000. His down payment was \$1200, and he made 24 monthly payments of \$83.06. Find the APR from the table below.

Annual Percentage Rate

A.9.5%

B.11%

C.10%

D.10.5%

## AMU MATH 125 week 5 test Question 19

Katie had an unpaid balance of \$2,072.25 on her credit card statement at the beginning of March. She made a payment of \$440.00 during the month. If the interest rate on Katie’s credit card was 15.5% per month on the unpaid balance, find the finance charge and the new balance on April 1.

A.Finance charge = \$319.31; new balance = \$1,951.56

B.Finance charge = \$331.34; new balance = \$1,963.59

C.Finance charge = \$321.20; new balance = \$1,953.45

D.Finance charge = \$325.31; new balance = \$1,957.56

## AMU MATH 125 week 5 test Question 20

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 = \$472.99; Finance Charge = \$46.30; New Balance = \$630.32

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

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