Consumer Math
Final Exam REVIEW: Term 4
Name: ANSWER KEY
Bk:_____
Multiple Choice.
1. Diversification lowers risk with investing.
A) True
B) False
2. Company X has decided to issue a portion of its earnings to its shareholders. If you
own stock in Company X, you can expect to receive a(n):
A) Investment
B) Bond
C) Stock
D) Dividend
3. A piece of ownership in a company, mutual fund or other investment.
A) Risk
B) Investment
C) Share
D) Liquidity
4. The basic rule of investing is to keep it ______________.
A) Complicated
B) Simple
5. What percent is saved if Phillis buys a car for $13,450 after her trade-in of $1,500?
A) 10%
B) 11%
C) 89%
D) 90%
6. About how long would it take to drive 507 miles at an average speed of 65mph?
A) 7:01
B) 7:13
C) 7:36
D) 7:48
7. How much does Markus need to put down as a down payment for a car listed at
$25,331 if he is required to put down 15%?
A) $379.97
B) $3799.65
C) $2,153.14
D) $21,531.35
8. Find the original price for an ottoman selling for $299.99 at 40% off. Round to the
nearest dollar.
A) $499.98
B) $749.98
C) $532.98
D) $801.98
9. If you earn $11.25 an hour, what is the most you should pay for rent each month if
you followed the renter’s rule?
A) $400
B) $450
C) $500
D) $550
Multiple Choice Continued.
10. If you earned $1,500 semimonthly (24 pay periods), how large a mortgage could
you get?
A) $72,000
B) $80,000
C) $85,000
D) $90,000
11. Find the percent discount for a $350 item on sale for $245.
A) 20%
B) 25%
C) 30%
D) 35%
12. How much paint is needed to paint the walls of a room 18’ x 11’ x 9’? Each gallon
covers 400 square feet, and each quart covers 100 square feet.
A) 1 gallon, 1 quart
B) 1 gallon, 1.5 quarts
C) 1 gallon, 2 quarts
D) 2 gallons, 2 quarts
13. A family used 125 units of gas in October. The rate is $0.64 per unit. How much
does the family owe the gas company for October?
A) $65
B) $70
C) $75
D) $80
Fill in each blank with the word that best fits each statement.
14. A deductible is an annual amount of money the insured must pay before the
insurance company will pay for any expenses.
15. The amount of money the insured must pay at each appointment before the health
plan will pay out anything for that particular visit is called a co-payment.
16. A premium is an amount of money an individual pays to an insurance company
each month to purchase insurance.
17. Compound interest is interest calculated based off the principal and interest to
date.
18. Simple interest is interest calculated just based off the principal.
For questions 19 – 24, assume (this year) you will need to see the doctor three
times at $225 per doctor visit and you will need an air cast once at a cost of
$750.
19. What is the annual premium?
$900
20. Find the cost to you for the first visit.
Insurance 1
Premium $75/month
Deductible $150
Co-Pay $25
Co-Insurance 10%
Out-of-Pocket Max: $2,500
$150+25+5 = $180
21. Find the cost for the remaining two doctor visits.
2(25+20) = $90
22. Calculate the cost of the air cast.
$25+72.50 = $97.50
23. Calculate the total cost for medical expenses excluding the premium (add totals
from 20-22). Remember if this total is more than your out-of-pocket max then you
default to the max amount for the yearly total. Then find your total cost for expenses
including your premium.
Yearly cost for medical expenses without premium:
$367.50
Yearly cost for medical expenses with premium:
$1267.50
24. How much would your medical expenses for this situation be if you did not have
insurance? How much did you save this year by having insurance (use the yearly cost
with premium when calculating savings)?
$1425 without insurance; saved $157.50
Use the table to answer questions 25 - 26.
Annual Liability Insurance Premiums
Area
High
Risk
Average
Low
Risk
10/20
Personal Injury
20/40
40/80
$210
$167
$470
$339
$140
$229
Property Damage
10
25
75/150
5
50
$610
$470
$835
$620
$72
$56
$84
$69
$99
$77
$148
$98
$340
$489
$48
$52
$61
$73
25. Warren, lives in an average risk area, and wants 40/80/25 coverage. Because
young males have the highest rate of accidents, he will be charged a 1.67 factor on his
policy. What is his premium?
$470+77 = $547
$547*1.67 = 913.49
26. Sofia lives in a high risk area and wants 10/20/5 coverage. Because she has a
good driving record, she is charged a 0.86 factor on her policy. What is her premium?
$242.52
Find the simple interest earned and the total amount in each case. Round your
answers to the nearest cent.
Principal
Rate
Time
27.
$2,550
9.5%
3 years
28.
$945
7%
10 years
Interest
$726.75
Total
$3276.75
$661.50
$1606.50
Find the simple interest earned and the total amount in each case. Round your
answers to the nearest cent.
Principal
Rate
Time
29.
$3,900
11.5%
6 months
30.
$10,500.00
5 ½%
11 months
Interest
$224.25
Total
$4124.25
$529.38
$11,029.38
Compute the new balance at the end of the given number of years using the
nt
r

formula A  P1   .
 n
31.
Principal: $1,498
Rate: 8%
Compounded Semiannually
Years: 4
32.
$2050.12
Principal: $4,975
Rate: 7.5%
Compounded Quarterly
Years: 5
$7213.49
33. Practice keeping track of money on the following stock tracking sheet. Buy and
sell the amounts using the prices and amounts indicated. Parentheses around
numbers indicate that you will be subtracting.
Amount you have to invest: $150.00
Year
Price/Share
Action
# of Shares
Bought/Sold
Total Shares
Remaining
Available
Money
1
$3.00
Buy
40
40
$30.00
$120
2
$5.00
Sell
(18)
22
16
$168
26
$128
38
$92
3
$8.00
Sell
(6)
4
$4.00
Buy
10
5
$3.00
Buy
12
How many shares are left?
38
Total amount of money available?
$92
If you sold all your remaining stock for $10 a share, how much money would you
have?
$92+(10*38) = $472
What is your profit or loss after selling all of your stock?
$322 profit
34. Jake invests in a movie company. He buys the stock at $9.00 at sells it at $7.25.
Find the percent of decrease.
19.4% decrease
35. Sandy invests in a shoe company. She buys stock at $18.25 and sells it for
$21.25. What is the percent of increase?
16.4% increase
36. Eric receives a dividend of $1.34 on each of his 167 shares of stock. How many
more shares can he buy at $8.62?
$223.78/8.62 = 25.96 shares, so 25 whole shares
37. Find the sticker price for the vehicle including the add-on options. Then find the
profit made if the dealer sells it for the price given.
Vehicle: Station Wagon with a base price of $25,886
Option
Base Price
Cargo Net
Luggage Rack
Rear Window Defroster
Air Conditioning
AM/FM Stereo with Cassette
Tinted Glass
Security System
Transportation and Handling
Total
Retail – Increase
$25,886
$52
$295
$125
$1,003
$150
$98
$189
$600
$28,398
If the selling price is $32,945, what is the dealer’s profit?
$4547
38. Michelle buys a $13,995 car with a $1,500 trade-in. How much does she actually
pay for the car? What percent was saved with the trade-in?
$12,495 paid; 10.7% saved
39. The car Bill wants to buy has a list price of $11,157. The dealers will sell it at 8%
off. How much will Bill pay for the car?
$10,264.44
40. When Susan purchased her car, she agreed to pay $500 down and $317.45 per
month for 16 months. How much total will she have paid for the car after that time
period?
$5579.20
41. Joe wants to buy a car listed at $9,351. To get a loan, he must make a down
payment of 5%. How much must he put pay as a down payment?
$467.55
Find the total interest paid for each purchase.
42.
Cash Price: $18,798
Down Payment: $1,000
Monthly Payment: $317.56
Months to Pay: 60
43.
Cash Price: $6,998
Down Payment: $461
Monthly Payment: $177.94
Months to Pay: 52
Interest Paid:
Interest Paid:
$19,053.60 paid in monthly payments
$17,798 borrowed
$1255.60 in interest
$9252.88 – 6537 = $2715.88
Find the gas mileage for each trip. Round your answer to the nearest whole
number.
Distance
Gas Used
MPG
26
44.
1,093 miles
42 gallons
45.
344 miles
14 gallons
25
Find the city and highway ranges for each car.
46.
47.
EPA Rating
City
EPA Rating
Highway
Tank
Capacity
25 mpg
32 mpg
18 gallons
17 mpg
22 mpg
20 gallons
Range
City
450
Range
Highway
576
340
440
Find the amount of fuel needed for each trip. Round your answer up to the next
whole number. Then find the total cost of gas given each price per gallon.
Distance
Mileage
Rating
48.
501 miles
45 mpg
49.
2,107miles
25 mpg
Amount of
Fuel
12 gal.
85 gal.
Price per
Gallon
$1.98
$2.79
Cost for
Fuel
$23.76
$237.15
Find the average rate of speed for each trip. Round your answer to the nearest
whole number.
Distance
Time
50.
158 miles
1 hours, 45 minutes
51.
304 miles
3 hours, 19 minutes
Rate of Speed
90 mph
91 mph
Find the travel time for each of these trips. Round your answer to the nearest
minute.
Distance
Average Speed
52.
782 miles
55 mph
53.
33 miles
65 mph
Time Needed
14 hours, 13 minutes
30 minutes
54. Kevin pays $670.50 per month for rent. How much does he pay in a year?
$8046
55. If Kevin (from number 54) earns $3,951 per month, then does he pay rent
according to the renter’s rule?
Makes $911.77 per week, which is greater than the monthly rent of $670.50, so
yes he does
56. Calculate the minimum annual income needed to borrow $175,000 according to
the banker’s rule.
$70,000
57. If Mae wants to buy a house for $210,000 and needs to put 20% down to obtain a
loan, how much will her down payment be?
$42,000
58. What is 34% of 245?
83.3
59. 36.75 is what percent of 105?
35%
60. 93 is 18% of what number?
516.7
61. Find the original cost of a table selling for $527.95 at 20% off.
$659.94
62. Find the discount rate (percentage) if a $55 item is on sale for $39.99.
27.3%
63. Find the perimeter and area of the following figure.
15 in
15 in
P = 130 in.
A = 750 square inches
30 in
35 in
64. Paint sells for $8.99 a quart and $32.99 a gallon. How many gallons and quarts
should be purchased if 11 quarts are needed? How much will the paint cost?
2 gallons and 3 quarts = $92.95
65. A special variety of wallpaper covers only 65 square feet per roll. How many single
rolls are needed to paper a room measuring 15’ x 12’ x 9’?
486 square ft. of walls / 65 square feet per roll = 7.5 rolls, so 8 rolls
66. What is the total cost of an addition measuring 15’ x 20’ if the cost per square foot
is $70.95?
$21,285
67. Calculate the length of fencing needed to enclose this area.
200 ft
P = 820 ft.
20 ft
175 ft
35 ft