Grade__________ Name__________________________________________________

MATH 1001
Practice Test 3
8.1, 8.3, 8.4, 8.5, 8.6, 10.1, 10.2, 10.3, 10.4
1. Show your work for full credit.
Be sure to answer what the question asks.
Leave your answers in simplest form.
Clearly identify your answers.
Calculators that are part of other electronic devices are not allowed.

1. (5 points) Suppose that the local sales tax rate is 4% and you purchase a car for
$14, 800. (Round up to nearest cent.)

a) The amount of tax paid is

b) The total cost is

2. (4 points) A sofa regularly sells for $570. The sale price is $444.60. Find the percent
decrease of the sale price from the regular price. (Keep two decimals)

The percent decrease is:

3. (4 points) The principal P is borrowed at a simple interest rate r for a period of time t.
Find the simple interest owed for the use of the money. (Round up to nearest cent.)
P=$280, r=5%, t=2 years

The simple interest is:

4. (4 points) The principal P is borrowed at a simple interest rate r for a period of
time t. Find the loan’s future value A, or the total amount due at time t. (Round up
to nearest cent.) P = $25, 000, r = 8.0%, t = 2 years.

The future value is:

5. (4 points) Suppose that you borrow $2000.00 from a friend and promise to pay
back 2840.00 in 2 years. What simple interest rate will you pay? (Keep two
decimals)

The simple interest rate is:

6. (4 points) A bank offers a CD that pays a simple interest rate of 3.0%. How much
must you put in this CD now in order to have $3, 000 for a home-entertainment
center in 3 years? (Round up to nearest cent.)

The present value that must be invested now is:

7. (12 points) ) Find the future value of an investment of $20, 000 for 7 years at an
interest rate of 4% if the money is: (Round up to nearest cent.)

a) compounded semiannually:

b) compounded quarterly:

c) compounded monthly:

d) compounded continuously:
8. (4 points) How much money should be deposited today in an account that
earns 7% compounded semiannually so that it will accumulate to $8, 000 in
three years? (Round up to nearest cent.)

The amount of money that should be deposited is:

9. (9 points) Use the appropriate formula to determine the periodic deposit and
find how much of the financial goal comes from deposits and how much comes
from interest? (Round up to the nearest dollar.)

Periodic Deposit Rate Time Financial Goal

? at the end of every 4.5% compounded 6 years $30, 000

three months quarterly

a) The periodic deposit is :

b) of the $30 000 comes from deposit

and comes from the interest

10. (8 points) You would like to have $72, 000 available in 15 years. There are two options.
Account A has a rate of 4.5% compounded once a year. Account B has a rate of 4%
compounded daily. How much would you have to deposit in each account to reach your
goal? Assume 365 days in a year. (Round up to the nearest dollar.)

a) Invest in account A:

b) Invest in account B:

11. (6 points) At the age of 26, to save for retirement, you decide to deposit $60 at the
end of each month in an IRA that pays 6.5% compounded monthly. (Do not round
until the final answer and then round up to the nearest dollar.)

a) When you retire at 65, in the IRA, you will have

approximately:

b) The interest is approximately:

12. (6 points) How much should you deposit at the end of each month into an
investment account that pays 9% compounded monthly to have $3 million when you
retire in 43 years? How much of the $3 million comes from interest?

a) The deposit each month is:

b) of the $3 million comes from interest.

13. (5 points) Suppose that you borrow $15, 000 for three years at 5% toward the
purchase of a car. Use the PMT formula to find the monthly payments and the
total interest for the loan. (Round to the nearest cent.)

a) The monthly payment is:

b) The total interest for the loan is:

14. (5 points) Explain why the triangle are similar. Then find the missing length, x.

Choose the reason that the triangles are similar (Circle the answer) and find x.
A. Both triangles are obtuse.
B. The sum of the three angles in each triangle is 180◦.
C. The vertical angles in the triangle are equal in measure.
D. The angles in the small triangle are equal in measure to their
corresponding angles in the large triangle.

x=

15. (4 points) Find the unknown side of the triangle.

The length of the unknown side is:

16. (4 points) A 17-foot ladder is placed against a vertical wall of a building, with
the bottom of the ladder standing on level ground 13 feet from the base of the
building. How high up the wall does the ladder reach? (Round to the nearest
hundredth as needed.)
Answer is

17. (4 points) A rectangular field is four times as long as it’s wide. If the perimeter of the
field is 350 yards, what are the field’s dimensions?

18. (6 points) A school playground is in the shape of a rectangle 500 feet long and
100 feet wide. If fencing costs $22 per yard, what will it cost to place fencing
around the playground? (Round up to nearest cent.) Find the area of the
playground in square yards

The cost is : Area is

19. (8 points) For each of the following statements, determine whether it is true or false (circle the
answer; you don’t need to show any work).
True or False Circumference of a circle is C=Dπ , where D is a diameter.
True or False
True or False
True or False

Cheat sheet for Test 3.