Deck 7: Consumer Mathematics

Question 1

Express as a percent. Leave the solution in "bar notation."

Answer 1

Question 2

The sale price of a spring break vacation package was $174.99, and the travel agent said by booking
Early, you saved $35. Find the percent decrease in price.

A)20.0%
B)8.3%
C)16.7%
D)25.0%

Answer 2

C

Question 3

Express 7.98 as a percent.

A)7.98%
B)0.0798%
C)798%
D)79.8%

Answer 3

C

Question 4

Fill in the blank: When some quantity gets smaller, we calculate percent decrease, in decimal form, using the
formula
Percent decrease =

Question 5

Find the sales tax and total cost of an item that costs $289.99 if the tax rate is 4.5%.

Question 6

Express as a percent.

Question 7

Fill in the blank: When some quantity gets larger, we calculate percent increase, in decimal form, using the
formula
Percent increase =

Question 8

Express as a percent.

Question 9

Express 29% as a fraction.

Question 10

A real estate agent received a 3% commission on the sale of a home. If his commission was $4,800,
how much did the home sell for?

Question 11

The average teachers' and superintendents' salaries for a school district was $54,884. Three years
Later, the new average was $68,000. Find the percent increase to the nearest tenth of a percent.

A)12.0%
B)16.0%
C)23.9%
D)8.0%

Question 12

Express 985% as a decimal.

A)98,500
B)985
C)9.85
D)98.5

Question 13

A coat was reduced from $250 to $200. Find the percent decrease.

A)0.8%
B)25%
C)20%
D)1.25%

Question 14

A necklace with an original price of $409.95 is on sale for 80% off. Find the sale price.

Question 15

Express 0.103 as a percent.

A)0.00103%
B)10.3%
C)0.103%
D)1.03%

Question 16

Express 13.6% as a decimal.

A)13.6
B)1.36
C)1,360
D)0.136

Question 17

Express 920% as a mixed number.

Question 18

Express 59% as a decimal.

Question 19

Express 0.2 as a percent.

A)0.002%
B)20%
C)0.2%
D)2%

Question 20

Express as a mixed number or a fraction.

A)
B)
C)
D)

Question 21

Find the future value of the loan.
P = $13,200, r = 6.5%, t = 2 months

A)$14,673.20
B)$13,343.00
C)$14,677.30
D)$13,339.27

Question 22

According to a government agency, there were 103,600 chefs/head cooks employed in the United
States in 2010 and 322,600 food service managers. Those numbers were projected to decrease to
102,100 and 304,600 by 2020. Which job was facing the larger percent decrease? By how much?

A)Chefs/Head Cooks; 5.58%
B)Food Service Managers; 5.58%
C)Chefs/Head Cooks; 1.45%
D)Food Service Managers; 1.45%

Question 23

When putting together a monthly budget what are important considerations?

Question 24

My friend Charles noticed that one of his students came to class every day with two cups of coffee
From a well-known coffee chain that isn't exactly famous for their low prices. He asked her if she'd
Ever thought about how much she spent on that coffee over the course of a year; not surprisingly,
She had not. If she paid $2.75 per cup for that coffee every day, how much would she spend on
Coffee in a year?

A)$1,003.75
B)$715.00
C)$2,007.50
D)$1,430.00

Question 25

Marlene works full-time as an executive assistant, and she has a check for $1,820.36
direct-deposited into her checking account every other Friday. How much money does Marlene
make per year? There are different approaches to calculating this amount, so make sure that you
describe how you arrived at your answer.

Question 26

According to a government researcher, the average cost of tuition, room and board, and fees at
public 4-year universities was $8,453 in the 2000-2001 academic year, $12,697 for 2006-7, and
$15,114 for 2009-10. Find the percent increase from 2001 to 2007 and from 2007 to 2010.

Question 27

If a worker is paid a salary of $45,100 per year and is in a tax bracket that results in 28% deductions,
What is her monthly take-home pay?

A)$3,758.33
B)$1,879.17
C)$1,052.33
D)$2,706.00

Question 28

Find the missing value.

Question 29

is a fee charged for the use of money.
is the amount of money borrowed or placed into a savings account.
is the percent of the principal paid for having money loaned, or earned for investing money.
Unless indicated otherwise, rates are given as a percent for a term of 1 year.
or term is the length of time that the money is being borrowed or invested. When the rate is
given as a percent per year, time has to be written in years.
is the amount of the loan or investment plus the interest paid or earned.

Question 30

In many cases, property taxes when you own a home are paid every six months, homeowner's
Insurance is paid once per year, and car insurance is paid every six months. One homeowner pays
$1,450 in property taxes twice a year, $946 in homeowner's insurance annually, and makes car
Insurance payments of $294.32 and $335.40 every six months. If this homeowner wants to spread
These expenses out by putting some money each month into a savings account, how much should she
Put aside per month?

A)$304.62
B)$504.29
C)$425.45
D)$372.98

Question 31

Jin pays $341.38 every six months for car insurance. He also pays $2,783 for tuition at the
Beginning of both fall and spring semesters, and budgets $700 for books and supplies for each
Semester. If he wants to plan ahead, how much money should he put into savings every month?
Explain how you decided on that amount.

A)$1,798.40
B)$347.15
C)$3,824.38
D)$637.40

Question 32

1. Simple interest = 2. Future value =

Question 33

You buy $131 in clothes at a department store. You can choose between coupons that offer $20 off
your entire purchase or 25% off. Which will save you more money? By how much?

Question 34

Find the missing value.

Question 35

Find the missing value.

A)4.5 years
B)6 years
C)5 years
D)5.5 years

Question 36

Find the missing value.

A)$1,404.00
B)$14,040.00
C)$168,480.00
D)$16,848.00

Question 37

Find the future value of the loan.
P = $7,800, r = 8%, t = 4 years

A)$9,266.40
B)$10,296.00
C)$9,550.63
D)$10,611.81

Question 38

Find the simple interest on a loan of $16,600 for 3 years at a rate of 17.5% per year.

Question 39

Leslie shares an apartment with two friends, and the rent and utilities are split equally by all three
Tenants. Find the amount left for variable expenses and luxuries if her monthly income is $1,669.54
And fixed expenses are shown below.
Total rent: $1,741 Total utilities $341
Public transportation: $95 Cell Phone: $89.50
Insurance: $46.60 Gym membership $39.95

A)$885.19
B)$477.16
C)$704.49
D)$965.05

Question 40

Leslie's monthly income is $1,871.04 and has fixed expenses of $912.46. Leslie treats her
Roommates to salads and pizzas from Papa Antonio's every Monday and Thursday, at a cost of $30,
Including delivery and tip. What percentage of her budget after fixed expenses goes toward these
Semiweekly gatherings on average?

A)12.8%
B)26.3%
C)25%
D)12.5%

Question 41

Find the missing value.

Question 42

The general formula for compound interest is A =

Question 43

After winning $78,000 on a game show, Jasmine invests the money in a fixed-rate account offering
6.7% interest compounded semiannually. How long will it take that amount to grow to $100,000?

A)1.92 years
B)3.77 years
C)7.54 years
D)3.83 years

Question 44

Find the missing value.

Question 45

Find the interest on the loan using the Banker's rule.
P = $2,000, r = 11%, t = 90 days

A)$48.83
B)$54.25
C)$49.50
D)$55.00

Question 46

Dr. Sand borrowed some money to buy new furniture for his office. He paid $48.00 simple interest
On a 2-year loan at 4%. Find the principal.

A)$750
B)$700
C)$500
D)$600

Question 47

Find the missing value.

A)12.5%
B)13%
C)11.5%
D)12%

Question 48

Find the amount of interest earned.

Question 49

Find the missing value.

A)$16,250
B)$16,200
C)$16,000
D)$16,100

Question 50

Angela borrowed $300 at 16% simple interest to buy a chair. Find the term of the loan if the
interest was $384.00.

Question 51

Find the amount of interest earned.

A)$190.14
B)$192.29
C)$195.43
D)$182.18

Question 52

For an investment of $100,000 at 9% interest for 8 years, find (a)the simple interest, and (b)the
Compound interest if interest is calculated once per year.

A)a. $72,000; b. $104,892.12
B)a. $99,256.26; b. $104,892.12
C)a. $72,000; b. $99,256.26
D)a. $99,256.26; b. $72,000

Question 53

The (also known as the annual yield)is the simple interest rate which would yield the same
future value over 1 year as the given compound interest rate.

Question 54

Find the future value.

A)$2,558.83
B)$2,629.58
C)$2,679.20
D)$2,579.08

Question 55

A Motel is converting its rooms into privately owned condominiums. The interest on a $3,800,000,
30-year construction loan is $90,000. What is the rate of interest? Does the rate seem unreasonable?

A)4.30%; reasonable
B)0.08%; unreasonable
C)5.80%; reasonable
D)1.60%; unreasonable

Question 56

$2,100 is invested for 6 months in a savings account with a rate of 7.5% simple interest per year.
Find the interest.

A)$787.50
B)$78.75
C)$9,450.00
D)$945.00

Question 57

Find the future value.

Question 58

Find (a)the discount, (b)the amount of money received, and (c)the true interest rate.
P = $13,000, r = 3.5%, t = 9 years

A)
B)
C)
D)

Question 59

Find the interest using the Banker's rule.
P = $12,740, r = 7.2%, t = 45 days

A)$124.40
B)$114.66
C)$113.09
D)$126.13

Question 60

Fran borrowed $8,800 for 2.5 years. The simple interest is $3,080.00. Find the rate.

Question 61

A 25-year-old decides that her goal is to retire at age 50 with at least $2,000,000 in savings. The
Company investment annuity offers 7.3% annual returns, compounded monthly. What amount will
She need to invest each month?

A)$12,300.62
B)$8,200.41
C)$16,400.82
D)$2,353.96

Question 62

If you have a $600 balance on a credit card that charges 17% interest compounded monthly, how
Long will it take that amount to reach $3,000 if you don't make any payments?

A)9.53 years
B)10.25 years
C)114.41 years
D)0.85 years

Question 63

Kelly bought a new SUV for $28,000. She made a down payment of $12,500 and has monthly
Payments of $303.28 for 5 years. She is able to pay off her loan at the end of 36 months. Using the
Actuarial method, find the unearned interest and payoff amount.

A)u = $423.41 payoff amount: $7,822.79
B)u = $423.41; payoff amount: $6,400.46
C)u = $470.46; payoff amount: $7,111.55
D)u = $470.46; payoff amount: $7,582.08

Question 64

Petty Marine Co. has a long-term plan to expand to a second location that's actually near some
Water, so they want to start a monthly annuity to save $160,000 in capital over 6 years. The best rate
They can find is 8%. Find the monthly payment.

A)$5,920.73
B)$3,947.15
C)$1,738.65
D)$7,894.30

Question 65

Roger borrowed $400.00 for 1 year. His payments are $34.50 a month. If he decides to pay the loan
off after 8 months, find the amount of interest that he will save. (Use the rule of 78s.)

Question 66

A $1,900 loan is to be paid off in 12 monthly payments of $182.51. The borrower decides to pay
Off the loan after 9 payments. Use the rule of 78s to find the amount of interest saved.

A)$27.49
B)$22.32
C)$21.29
D)$21.78

Question 67

As part of her retirement planning, Mrs. Campbell purchases an annuity that pays 9.5% compounded
Quarterly. If the quarterly payment is $3,500, how much will Mrs. Campbell have saved in 5 years?

A)$88,340.37
B)$88,289.87
C)$88,389.99
D)$88,269.62

Question 68

A $1,600 loan is to be paid off in 12 monthly payments of $139.81. The borrower decides to pay
off the loan after 3 payments. Find the amount of interest saved using the rule of 78s.

Question 69

Stephen purchased a diamond engagement ring for $3,000. His down payment was $700, and he
Made 24 monthly payments of $106.14. Find the APR from the table below.

A)9.5%
B)10.5%
C)11%
D)10%

Question 70

As part of his retirement planning, Mr. Martin purchases an annuity that pays 12.5% compounded
quarterly. If the quarterly payment is $9,500, how much will Mr. Martin have saved in 5 years?

Question 71

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 5.5% interest for 6 years.
How much will you need to pay each week?

A)$118.43
B)$85.27
C)$104.22
D)$94.74

Question 72

In order to help pay for college, the grandparents of a child invest $850 in a bond that pays 15%
Interest compounded semiannually. How much money will there be in 7.5 years?

A)$2,494.80
B)$2,565.55
C)$2,515.05
D)$2,615.17

Question 73

Kelly purchased a toaster for $105. She made a down payment of 15% and financed the rest for 6
Months with payments of $21.50. Find (a)the down payment and (b)the total installment price of
The toaster.

A)$15.75, $144.75
B)$15.75, $130.28
C)$17.33, $159.23
D)$14.18, $144.75

Question 74

Find the effective rate when the stated rate is 19% and the interest is compounded quarterly.

Question 75

Samir purchased a car for $40,000. He made a down payment of $20,000 and paid $631.33 monthly
For 3 years. Find the APR from the table below.

A)7.0%
B)7.5%
C)8.5%
D)8.0%

Question 76

Determine the better investment: 4% compounded monthly or 4.2% compounded semiannually

A)4.2% compounded semiannually
B)4%, compounded monthly

Question 77

Joan purchased a refrigerator for $1,200. She made a down payment of $65 and paid $121 a month
For 11 months. Find the total installment price of the refrigerator.

A)$1,375.00
B)$1,396.00
C)$1,407.00
D)$1,418.00

Question 78

Find the effective rate when the stated rate is 15.5% and the interest is compounded semiannually.

A)15.35%
B)16.35%
C)17.15%
D)16.10%

Question 79

Sheila borrowed $1,000.00 for 1 year. Her monthly payments are $89.60. If she decides to pay the
Loan off after 4 months, find the amount of interest that she will save. (Use the rule of 78s.)

A)$34.71
B)$37.60
C)$75.20
D)$9.64

Question 80

Kevin bought a new car for $22,000. He made a down payment of $7,000 and has monthly
Payments of $369.72 for 4 years. He is able to pay off his loan at the end of 30 months. Using the
Actuarial method, find the unearned interest and payoff amount.

A)u = $427.22; payoff amount: $6,597.46
B)u = $427.22; payoff amount: $7,024.66
C)u = $469.94; payoff amount: $5,937.69
D)u = $469.94; payoff amount: $7,257.18