Question 1.

On March 5th, a couple took out a 90-day loan for $450 at 9% interest. On March 29th, they made a
partial payment of $150. After making the payment, how much did they still owe?
a. $300.00

b. $300.90

c. $301.80

d. $302.70

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2
On January 10th, Park & Jason, Inc. took out a 3-month , 8% note for $3,000.
On February 24th, they paid $1,000 towards the debt. How much did they owe
on April 10th when the note can due?
a. $2,000.33

b. $2,050.30

c. $2,033.33

d. $2,056.25

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3
On June 1st, a school teacher signed a 2-month note for $600 at 12% to pay for
a vacation. On July 1st, he paid $300 on the loan, and July 31st, he paid off the
loan. What is the total interest he paid on the loan?
a. $9.06

b. $9.15

c. $12.00

d. $12.20

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4
Charlie Consumer's credit card balance on April 1st was $40. On April 7th, he
made a $10 payment and on April 25th he charged a $25 item. If his credit card
company charges a finance charge of 2% on the average daily balance, what
will be his balance on May 1st when he receives his next statement?
a. $55.83

b. $55.19

c. $55.65

d. $55.37

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5
Ellen Nancy borrowed $500 at 12% simple interest, to be repaid in 8 equal
monthly installments of $70. If she pays off the loan when she makes her 4th
payment, how much will she save in finance charges under the rule of 78s?
a. $17.19
 b. $21.43

c. $30.00

d. $16.67

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6
Which of the following investments will produce the largest interest?
a. $100 a quarter for 5 years at 8% compounded quarterly

b. $1,000 at 7% simple interest for 6 years

c. $1,000 at 6% interest compounded annually for 4 years

d. $1,000 at 6% interest compounded quarterly for 4 years

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7
If an employee deposits $20 at the end of each month into his company's plan
which pays 6% interest compounded monthly, how much will he have in the
account at the end of 5 years?
a. $101.01

b. $1,301.01

c. $1,395.40

d. $10,662.56

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8
Find the present value of an annuity with payments of $40 a quarter for 10
years, if interest rates are 12% compounded quarterly.
a. $983.64

b. $990.49

c. $925.91

d. $924.59

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9
A young couple takes out a $80,000 mortgage to buy a new condominium.
They finance the loan at 7% compounded quarterly for 20 years. To the
nearest $10, how much interest will they pay over the 20-year life of the loan?
a. $69,250.00

b. $42,750.00

c. $15,510.00

d. $40,970.00

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10
Megatown, USA issued 10-year bonds totaling $2,500,000 for construction of
new service roads and entrance ramps onto the freeway. The town set up a
sinking fund at 12% compounded quarterly. What was the quarterly payment
into this fund?
a. $34,520.00

b. $33,155.00

c. $34,250.00

d. $33,515.00