Financial Algebra – Final Exam 2015 Review 1b
Name:
Per:
1) Tammy is looking to buy a truck in 6 years. On average the truck is selling for $22,000. How much should she
invest today into an account that yields 4.1% interest, compounded annually, to the nearest penny?
2) John and Barbara are both 25 years old. They would like to retire at the age of 60. They deposit $1,750 each year
into a savings account that has an interest of 2.75% compounded annually. What will their balance be at retirement?
Use the following information to answer questions 3 - 6:
Billy wants to buy a new computer that costs $3,800.
3) If the tax rate is 8.25%, what is the price of the computer with tax included, rounded to the nearest penny?
4) Billy doesn’t have enough money but the store is offering an installment plan that requires 20% of the price with
tax as a down payment. How much will he have to put down on the computer?
5) After the down payment, Billy will have to pay $145 a month for 2 years. What is the total cost of the computer
(sum of the monthly payments added to the down payment), rounded to the nearest penny?
6) How much of a finance charge did Billy end up paying?
7) Martha did not pay last month’s credit card bill in full. Find her average daily balance using the daily balances for
her last billing cycle, rounded to the nearest penny.
For twelve days she owed $478.92
For nine days she owed $253.47
For ten days she owed $381.51
Use the following table information to answer questions 8 - 9:
Square Footage
780
900
1300
1570
Price
$900
$1,150
$1,400
$1,725
8) Carmon collected the information above about apartments in the area by looking in the classified ads of a
newspaper. Based on his findings, what is the line of best fit for his numbers, rounded to nearest hundredth?
9) Using the line of best fit found in #8,
a) What is the approximate price, rounded to the nearest dollar, for an apartment that is 1425 square feet?
b) What is the approximate square footage of an apartment that goes for $1,275 per month, rounded to the nearest
foot?
10) Yarin found an apartment through a broker for himself with his dog. The apartment costs $1,425 per month.
The landlord wants the following before he moves in: first month rent, last month rent, security deposit, pet deposit
of $550, a credit check of $79, and to pay the broker 4% of the yearly rent. How much money does Yarin need to
move out of his mother’s attic?
11) The Record newspaper charges $19.75 for 4 or less lines, $3.45 for each additional line, and $17.40 for a picture
per week to run an ad in the classified section. How much did it cost Diana to put a three-week ad in the newspaper
to sell her car if her ad had 5 lines and included a picture?
12) Jamie paid $41,571 for her car. If it has depreciated annually at a rate of 18% per year and the car is now 4 years
old, how much is the car worth now, rounded to the nearest penny?
Use the following information to answer questions 13 – 14:
13) Dillon purchased a car for $12,000 and now has to register it and get insurance. When he went to DMV
he was told he needed to pay 6.45% in taxes plus $340 to get new license plates and register the car. How
much did Dillon have to pay DMV?
14) Dillon then went to the insurance company to find out how much insurance would be. According to
the following charts, how much will Dillon have to pay for insurance if he is 31 years old?
Insurance Cost
Premium
$0-$5,000
Risk%
Add % to
premium
Men 18-21
$900
25%
$5,001 - $10,000
$1,300
Men 22-29
21%
$10,001 - $25,000
$25,001 - $45,000
$1,700
$2,000
Men 30-45
17%
Men 46-60
10%
$45,001+
$2,300
Men 61+
5%
15) Roberto found 450 Saudi Arabian Riyals. If the exchange rate is 1 USD = 0.614 Riyals, how much in US Dollars did
Roberto get?
16) Marcia wants to go to Europe and needs to exchange $600 into Euros. If the exchange rate is 1 USD = 0.826
Euros, how much in Euros does Marcia get?