Exam Two Review Math 1324
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Find the future value of the loan.
1) $600.00 loan at 8% for 5 months
A) $625.00
B) $620.00
1)
C) $1020.00
D) $840.00
Solve the problem.
2) Tuition of $2700 is due when the spring term begins, in 9 months. What amount should a
student deposit today, at 11%, to have enough to pay tuition?
A) $205.77
B) $2494.23
C) $2432.43
D) $2515.53
3) Leon Harding receives proceeds of $4083 after signing a 30‐day note for $4100. Find the
discount rate. Round to the nearest tenth.
A) 5.1%
B) 3.1%
C) 0.4%
D) 2.6%
Find the future value of the loan.
4) $800 loan at 5.25% for 7 months
A) $826.73
B) $1094.00
2)
3)
4)
C) $829.50
D) $824.50
Solve the problem.
5) Allan borrowed $5500 from his father to buy a car. He repaid him after 11 months with
interest of 8%. Find the total amount he repaid.
A) $403.33
B) $5903.33
C) $5866.67
D) $5940.00
Solve the problem. Round to the nearest cent.
6) If inflation is 1% a year compounded annually, what will it cost in 15 years to buy a house
currently valued at $121,000?
A) $141,882.02
B) $130,399.61
C) $140,477.24
D) $139,086.38
Solve the problem.
7) Find the price (to the nearest cent) you should be willing to pay for the 20-year $25,000 bond
with interest at 5.9%( compounded semiannually).
A) $7814.23
B) $288.58
C) $15,628.45
D) $2524.07
Find the APY corresponding to the given nominal rates.
8) 5% compounded semiannually
A) 5.06%
B) 5.12%
5)
6)
7)
8)
C) 5.00%
D) 5.09%
Find the amount that should be invested now to accumulate the following amount, if the money is compounded as
indicated.
9) $2400 at 6% compounded annually for 7 yr
9)
A) $1596.14
B) $1691.91
C) $3608.71
D) $803.86
1
Solve the problem.
10) Find the face value (to the nearest thousand dollars) of the 15-year zero-coupon bond at 5.2%
(compounded semiannually) with a price of $20,835.
A) $35,200
B) $35,000
C) $45,000
D) $44,500
10)
11) $1334 is deposited into a savings account at 8% interest, compounded quarterly. To the nearest
year, how long will it take for the account balance to reach $1,000,000?
A) 75 years
B) 84 years
C) 58 years
D) 117 years
11)
12) Find the price (to the nearest cent) you should be willing to pay for the 5-year $15,000 bond
with interest at 3.1% (compounded semiannually).
A) $12,861.51
B) $25,723.02
C) $11,053.62
D) $8219.51
12)
13) Find the face value (to the nearest thousand dollars) of the 30-year zero-coupon bond at 3.8%
(compounded semiannually) with a price of $17,779.
A) $25,800
B) $25,000
C) $55,000
D) $55,500
13)
Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the
following amount. Payments are made at the end of each period. The interest rate given is per period.
14) $9300; money earns 8% compounded annually; 4 annual payments
14)
A) $546.86
B) $2063.86
C) $2864.71
D) $1585.25
Find the future value of the annuity due.
15) Payments of $500 made at the beginning of each year for 7 years at 4% compounded annually
A) $2816.49
B) $4107.11
C) $15,949.15
D) $3449.15
15)
Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the
following amount. Payments are made at the end of each period. The interest rate given is per period.
1
16) $92,000; money earns 7% compounded quarterly for 3 years
16)
4
A) $6363.90
B) $2824.65
C) $2965.12
D) $1262.83
Solve the problem.
17) Green Thumb Landscaping wants to build a $122,000 greenhouse in 2 years. The company sets
up a sinking fund with payments made quarterly. Find the payment into this fund if the
money earns 8% compounded quarterly.
A) $8596.12
B) $14,214.20
C) $7107.10
D) $12,008.46
17)
Find the final amount (rounded to the nearest dollar) in this retirement account, in which the rate of return on the
account and the regular contribution change over time.
18)
18) $500 per month invested at 6%, compounded monthly, for 25 years; then $2000 per month
invested at 8%, compounded monthly, for 25 years.
A) About $5,479,419
B) About $4,876,338
C) About $2,248,550
D) About $4,445,402
2
Use an amortization table to solve the problem. Round to the nearest cent.
19) The monthly payments on a $95,000 loan at 13% annual interest are $1050.70. How much of
the first monthly payment will go toward the principal?
A) $1029.17
B) $136.59
C) $914.11
D) $21.53
20) The monthly payments on a $95,000 loan at 12% annual interest are $1045.95. How much of
the first monthly payment will go toward interest?
A) $950.00
B) $920.44
C) $1140.00
D) $125.51
Find the monthly house payment necessary to amortize the following loan.
21) In order to purchase a home, a family borrows $40,000 at 2.625% for 15 yr. What is their
monthly payment?
A) $269.08
B) $313.09
C) $87.50
D) $5.83
Solve the problem by writing and solving a suitable system of equations.
22) Caroleʹs car averages 13.0 miles per gallon in city driving and 20.9 miles per gallon in highway
driving. If she drove a total of 372.4 miles on 25 gallons of gas, how many of the gallons were
used for city driving?
A) 6 gallons
B) 19 gallons
C) 11 gallons
D) 21 gallons
19)
20)
21)
22)
Find the monthly payment and estimate the remaining balance (to the nearest dollar). Assume interest is on the
unpaid balance.
23) 30-year car loan for $235,000 at 3.21%; remaining balance after 20 years.
23)
A) $1017.58; $104,332
B) $8162.32; $580,759
C) $1998.34; $656,476
D) $1017.58; $180,049
Solve the problem.
24) In order to purchase a home, a family borrows $50,000 at an annual interest rate of 12%, to be
paid back over a 20 year period in equal monthly payments. What is their monthly payment?
A) $579.16
B) $550.54
C) $500.00
24)
D) $25.00
Multiply both sides of each equation by a common denominator to eliminate the fractions. Then solve the system.
1
1
25) x + y = 2
25)
4
4
1
1
4
x - y = - 5
5
5
A) (-2, 7)
26)
B) (2, 6)
C) (1, 7)
D) No solution
5x 5y
5
- = - 2
4
2
26)
8x 4
= 9
9
A)
1
, 3
2
B)
1
, ‐3
2
1
C) ‐ , ‐3
2
3
1
D) ‐ , 3
2
Solve the system of two equations in two variables.
27) 8x + 7y = 36
3x - 4y = -13
A) (0, 5)
B) (1, 5)
28) 5x - 2y = 8
15x - 6y = 16
A) (1, 0)
27)
C) No solution
D) (1, 4)
28)
B) (1, -1.5)
C) (0, -4)
Solve the system by back substitution.
29) x + 4y+ 4z = -11
2y + 5z = -21
2z = - 10
A) (1, -5, 2)
B) No solution
D) No solution
29)
C) (1, 2, -5)
D) (-6, 2, -5)
Solve the system of equations. If the system is dependent, express solutions in terms of the parameter z.
30)
30) x + y + z = -7
x - y + 4z = -9
5x + y + z = -19
A) No solution
B) (-2, -3, -2)
C) (-3, -2, -2)
D) (-2, -2, -3)
Solve the problem by writing and solving a suitable system of equations.
31) A company makes 3 types of cable. Cable A requires 3 black, 3 white, and 2 red wires. Cable B
requires 1 black, 2 white, and 1 red wires. Cable C requires 2 black, 1 white, and 2 red wires.
They used 100 black, 110 white and 80 red wires. How many of each cable were made?
A) 20 cable A
B) 20 cable A
C) 10 cable A
D) 20 cable A
20 cable B
20 cable B
20 cable B
93 cable B
10 cable C
83 cable C
20 cable C
10 cable C
Perform the indicated operation.
32) Let A = 1 3 and B = 0 4 . Find 4A + B.
24
‐1 6
B)
A)
4 7
4 16
7 10
1 10
31)
32)
C)
D)
4 16
7 22
1
‐1
33) Let C = ‐3 and D = 3 . Find C - 3D.
2
‐2
A)
B)
4
-4
12
‐6
4
-8
4 28
4 40
33)
C)
D)
-2
6
-4
4
4
-12
8
Answer Key
Testname: EXAM TWO REVIEW MATH 1324 SPRING 2016
1) B
2) B
3) A
4) D
5) B
6) C
7) A
8) A
9) A
10) C
11) B
12) A
13) C
14) B
15) B
16) A
17) B
18) D
19) D
20) A
21) A
22) B
23) A
24) B
25) B
26) A
27) D
28) D
29) C
30) C
31) A
32) C
33) D
5