Business Math 1 - Theorem 16/05/2024 01:10

BUSINESS MATH 1
MTHH009058

Assignment
Unit 6 Evaluation

Your Assignment Has Been Submitted

Review
Assignment Grade Assignment Weight
A+ 98% 6%

Date Submitted Date Graded

MAY 15, 2024 MAY 15, 2024

Your work on this unit was excellent. You demonstrated superior understanding of home utility costs and the
costs in involved in home ownership and buying and maintaining a motor vehicle. Keep up the good work!

After reading this report and taking the suggested actions, if any are indicated, review Units 5 and 6.
Then make an appointment with your proctor to complete Progress Test 3.

Unit 6 Evaluation (printable format) (/Files/Courses/MTHH009058/Unit-6/Unit-6-Evaluation/Unit

6 Evaluation (printable format).pdf)

Multiple Choice
Choose the answer that best completes the statement or answers the question.

[Link] Page 1 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

1. What is the meter reading for this meter?

A. 2961 kWh

B. 2850 kWh

C. 3950 kWh

D. 3851 kWh

Correct Answer: B
Reading the meter from left to right, using the smaller number that the line is between on each dial, you get
2961. See Lesson 14, Checking Energy Costs, Example 1, for a similar problem.

2. What is the meter reading for this meter?

A. 74,900 cu ft

B. 750 cu ft

C. 749 cu ft

D. 75,000 cu ft

Correct Answer: A
Reading the meter from left to right, using the smaller number that the line is between on each dial, you get
749. Multiplied by 100 to get Hundred Cubic Feet = 74,900 cu ft See Lesson 14, Checking Energy Costs,
Example 4, for a similar problem.

[Link] Page 2 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

3. What is the meter reading for this meter?

A. 26,339 cu ft

B. 152,280 cu ft

C. 163,290 cu ft

D. 15,228 cu ft

Correct Answer: B
Reading the meter from largest to smallest, using the smaller number that the line is between on each dial
and adding a zero for the one-foot dial, you get 152280. See Lesson 14, Checking and Reducing Water
costs, Example 1, for a similar problem.

Multiple Choice
Use this information to answer questions 4 and 5.

Last month, Augie used 1,560 kWh of elecpicity. He pays $0.075 for the first 400 kWh,
$0.085 for the next 1000 kWh, and $0.095 for all kWh over 1400 kWh. He also pays a
fuel cost adjustment of $0.005 on the kWh used and pays 5% sales tax on the total energy
charges.

[Link] Page 3 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

4. What was the charge for the 1,560 kWh used?

A. $122.40

B. $138.00

C. $123.30

D. $130.20

Correct Answer: D
Multiply each portion of the kWh used by the rate for that portion, then add the costs for each portion
together. 400 x $0.075 = $30; 1000 x $0.085 = $85; 160 x $0.095 = $15.20. $30 + $85 + $15.20 =
$130.20. See Lesson 14, Checking Energy Costs, Example 3, for a similar problem.

5. What was Augie's elecpic bill?

A. $138.00

B. $144.90

C. $122.40

D. $130.20

Correct Answer: B
To get the total electric bill add all the per kWh charges plus the fuel cost adjustment $130.20 + $7.80 =
$138.00. Figure the sales tax: $138.00 x .05 = $6.90. Added together is total cost of $144.90. See
Lesson 14, Checking Energy Costs, Example 3, for a similar problem.

Multiple Choice
Use this information to answer questions 6–8.

Last month, Stan used 15,600 cu ft of natural gas. The therm factor is 1.2. The per therm
rates are: first 70 therms $0.30 per therm; over 70 therms $0.25 per therm. The customer
service charge is $8.80. Sales tax is 3%.

[Link] Page 4 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

6. What is the total number of therms used?

A. 18.72

B. 18,720

C. 156

D. 187.2

Correct Answer: D
You first divide the number of cu ft by 100 to get the CCFs. Then multiply the CCFs used by the term factor of
1.2: 156 x 1.2 = 187.2, the total number of therms used. See Lesson 14, Checking Energy Costs, Example
6, for a similar problem.

7. What is the cost of the gas?

A. $59.10

B. $50.30

C. $42.50

D. $41.50

Correct Answer: B
Multiply the therms by the costs to get the cost of the gas. 70 x .30 = $21.00; 117.2 x .25 = $29.30. $21.00
+ $29.30 = $50.30. See Lesson 14, Checking Energy Costs, Example 6, for a similar problem.

8. What is Stan's gas bill?

A. $60.87

B. $42.50

C. $59.10

D. $52.58

Correct Answer: A
The total gas bill is the cost of the gas plus the customer service charge, and the sales tax is figured on the
whole amount. $50.30 + $8.80 = $59.10. $59.10 x .03 = 1.77, sales tax. $59.10 + $1.77 = $60.87. See
Lesson 14, Checking Energy Costs, Example 6, for a similar problem.

[Link] Page 5 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

9. In the first three months of this year, Ryan used 15,960 cu ft of water. He pays a basic quarterly charge of
$0.80 per 100 cu ft for the first 6,000 cu ft, and $0.60 per 100 cu ft for all cu ft over 6,000 cu ft. What
was Ryan's water bill?

A. $127.68

B. $107.76

C. $95.76

D. $31.92

Correct Answer: B
15,960 – 6,000 = 9,960. 6,000 divided by 100 = 60. 60 x $0.80 = $48.00. 9,960 divided by 100 =
99.6. 99.6 x $0.60 = $59.76. $48.00 +$59.76 = $107.76. See Lesson 14, Checking and Reducing
Water costs, Example 2, for a similar problem.

Multiple Choice
Use this information to answer questions 10 and 11.

The Brunner's air conditioner was used an average of 8 hours a day for the first 15 days in
the July heat wave. The air conditioner uses 5,400 watts an hour, and elecpicity costs
$0.11 per kWh.

10. What was the number of kWh used?

A. 648

B. 6,480

C. 1,296

D. 12,960

Correct Answer: A
8 x 15 = 120 hours. 5,400 x 120 = 648,000 watts/1,000 = 648 kWh. See Lesson 14, Reducing Energy
Costs, Example 5, for a similar problem.

[Link] Page 6 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

11. What was the cost of running the air conditioner?

A. $13.79

B. $4.75

C. $8.91

D. $71.28

Correct Answer: D
648 x $0.11 = $71.28. See Lesson 14, Reducing Energy Costs, Example 5, for a similar problem.

Multiple Choice
Use this information to answer questions 12 and 13.

Sidney puts in two ceiling fans. He estimates that it will save him 15% of his normal heating
costs to circulate the air with the fans. If it costs him $1,200 a year to heat his house, and
the fans cost him $110 each.

12. What are Sidney's gross savings the first year?

A. $550

B. $180

C. $900

D. $110

Correct Answer: B
Sidney’s gross savings per year are 15% of the cost to heat the house. $1,200 x .15 = $180. You don’t
figure the cost of the fans in gross savings, only on net savings. See Lesson 14, Reducing Energy Costs,
Example 3, for a similar problem.

[Link] Page 7 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

13. What is the total net amount Sidney will save in 5 years?

A. $680

B. $220

C. $900

D. $1120

Correct Answer: A
Gross savings over five years are 180 x 5 = 900. Minus the cost of the fans: 900 – 220 = $680, net
savings. See Lesson 14, Reducing Energy Costs, Example 3, for a similar problem.

Multiple Choice
Use this information to answer questions 14 and 15.

The cost of running a 5-horsepower motor is 10¢ per kWh, and it is run for 3 hours.

14. What was the number of kWh used?

A. 11.19

B. .04973

C. 3.73

D. 2.238

Correct Answer: A
If you run a one horsepower motor for one hour, you use 746 watt-hours = .746 kWh of electricity. A 5-
horsepower motor run for 3 hours would use .746 x 5 x 3 = 11.19 kWh. See Lesson 14, Reducing Energy
Costs, Example 5, for a similar problem.

[Link] Page 8 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

15. What was the cost of running the motor for three hours?

A. $1.12

B. $2.46

C. $11.20

D. $0.41

Correct Answer: A
Cost is found by multiplying 11.19 kWh x $.10 = $1.12. See Lesson 14, Reducing Energy Costs, Example 6,
for a similar problem.

Multiple Choice
Use this information to answer questions 16 and 17.

Phil has a cell phone plan that allows him 700 airtime minutes that costs him $58.00 per
month. He gets free nights after 9:00 p.m. and free weekends. He is charged $.18 per
minute for all minutes over 700, and he is charged $.15 for each text sent or received. The
total taxes are 6% each month on his bill.

16. How much expa does it cost Phil to talk to his brother who lives in another state for 22 minutes during the
day on Monday if he has already used up all airtime minutes included in his base rate for the month?

A. $3.74

B. $3.96

C. $2.40

D. $3.08

Correct Answer: B
22 x $.18 = $3.96. See Lesson 14, Checking and Reducing Telephone Costs, Examples 2 and 3, for similar
problems.

[Link] Page 9 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

17. What is Phil's total phone bill for the month if he sends 122 text messages and talks for 745 minutes during
the daytime hours?

A. $84.40

B. $61.48

C. $89.46

D. $80.88

Correct Answer: C
122 x .15 = $18.30, charges for texting. 745 – 700 = 45 extra airtime minutes x $.18 = $8.10, extra
airtime charges. $58.00 + $18.30 + $8.10 = $84.40. $84.40 x .06 = $5.06, taxes. $84.40 + $5.06 =
$89.46, total charges. See Lesson 14, Checking and Reducing Telephone Costs, Examples 2 and 3, for
similar problems.

18. It costs Maria $4,400 to insulate her house. If she estimates the savings in gas and elecpicity to be $550
per year, what is the payback period?

A. 16 years

B. 8 months

C. 8 years

D. 4 years

Correct Answer: C
Cost divided by estimated savings per year equals payback period. $4,400 ÷ 550 = 8 years. See Lesson
14, Reducing Energy Costs, Example 4, for a similar problem.

Multiple Choice
Use this information to answer questions 19 and 20.

Tom estimates that he saves 80 gallons of water a week by watering his lawn in the early
morning. He watered his lawn 20 weeks last summer, and water costs $1.10 per thousand
gallons.

[Link] Page 10 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

19. How many gallons of water were saved?

A. 4 gal

B. 1600 gal

C. 100 gal

D. 4000 gal

Correct Answer: B
To find how many gallons were saved, multiply the gallons saved each week by the number of weeks. 80 x
20 = 1600 total gallons saved.. See Lesson 14, Checking and Reducing Water costs, Example 3, for a
similar problem.

20. How much money was saved?

A. $176.00

B. $1.76

C. $1.45

D. $17.60

Correct Answer: B
To find the amount of money saved by conserving water, multiply the estimated amount of water saved by
the cost of water. Since the cost is per thousand gallons, divide the number of gallons saved by 1,000 first,
then multiply by $1.10. 1600 gallons ÷ 1000 = 1.6. 1.6 x $1.10 = $1.76, money saved. See Lesson 14,
Checking and Reducing Water costs, Example 3, for a similar problem.

Multiple Choice
Use this information to answer questions 21–23.

The Ramseys bought a house for $75,000 and paid 15% down. Closing costs were: legal
fees, $225; prepaid taxes, $800; termite inspection, $80; and survey report, $125.

[Link] Page 11 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

21. What was the amount of the down payment?

A. $1,230

B. $75,000

C. $11,250

D. $7,500

Correct Answer: C
The down payment is $75,000 x .15 = $11,250, down payment. See Lesson 15, Buying a Home, Example
1, for a similar problem.

22. What were the closing costs?

A. $1,230

B. $1,025

C. $1,150

D. $11,250

Correct Answer: A
$225 + $800 + 80 + $125 = $1,230 closing costs. See Lesson 15, Buying a Home, Example 1, for a
similar problem.

23. What percent were the closing costs of the purchase price?

A. 1.6%

B. 8%

C. 15%

D. 16%

Correct Answer: A
Closing costs divided by house price = percentage of total house price. $1,230÷ $75,000 = 1.6%. See
Lesson 15, Buying a Home, Example 1, for a similar problem.

[Link] Page 12 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

Multiple Choice
Use this information to answer questions 24–27.

You have a fixed rate mortgage at % with a monthly payment of $570. You can

refinance your loan with a fixed rate mortgage of % with a monthly payment of $515.

You must also pay closing costs of $1,024 and a prepayment penalty of $1,686.

24. How much would you save in a month?

A. $41.25

B. $126.45

C. $85.33

D. $55.00

Correct Answer: D
Subtract the lower monthly payment from the higher to get the amount saved in a month. $570 – $515 =
$55. See Lesson 15, Buying a Home, Example 6, for a similar problem.

25. What would the gross savings be in 5 years?

A. $3,300

B. $3,310

C. $275

D. $5,120

Correct Answer: A
Gross savings are the yearly savings multiplied by 5. If monthly savings are $55, then $55 x 12 = $660
annual savings. 5 x $660 = $3,300. See Lesson 15, Buying a Home, Example 6, for a similar problem.

[Link] Page 13 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

26. What are the total refinancing costs?

A. $1,686

B. $2,710

C. $3,795

D. $1,024

Correct Answer: B
Total refinancing costs are closing costs + prepayment penalty. $1,024 + $1,686 = $2,710. See Lesson 15,
Buying a Home, Example 6, for a similar problem.

27. What would you net savings be at the end of 5 years?

A. $3,300

B. $660

C. $590

D. $662

Correct Answer: C
Net savings in 5 years are gross savings minus total refinancing costs. $3,300 – $2,710 = $590. See
Lesson 15, Buying a Home, Example 6, for a similar problem.

Multiple Choice
Use this information to answer questions 28–31.

Otto McBean wants to buy a house for $80,000. To make the 20% down payment, he
withdraws that amount from a savings account that is earning 5% interest. Other first-year
expenses are estimated to be $11,300 including depreciation.

[Link] Page 14 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

28. What is the amount of his down payment?

A. $4,000

B. $11,300

C. $28,100

D. $16,000

Correct Answer: D
Down payment is price multiplied by percentage. 80,000 x .20 = $16,000. See Lesson 15, The Cost of
Owning a Home, Example 2, for a similar problem.

29. What is the total interest income lost?

A. $4,000

B. $800

C. $565

D. $16,000

Correct Answer: B
Interest income lost is down payment multiplied by 5%. $16,000 x .05 = $800. See Lesson 15, The Cost of
Owning a Home, Example 2, for a similar problem.

30. What are his total expenses?

A. $16,000

B. $28,100

C. $12,100

D. $10,500

Correct Answer: C
Total expenses are interest income lost and other first-year expenses. $800 + $11,300 = $12,100. See
Lesson 15, The Cost of Owning a Home, Example 3, for a similar problem.

[Link] Page 15 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

31. If he expects to save $2,700 in income taxes from interest and property tax deductions, what is the net cost
of owning the home for the first year?

A. $9,400

B. $8,600

C. $7,800

D. $14,300

Correct Answer: A
Net cost is total expenses minus the income tax savings. $12,100 – $2,700 = $9,400. See Lesson 15, The
Cost of Owning a Home, Example 3, for a similar problem.

Multiple Choice
Use this information to answer questions 32–35.

Vince borrows $60,000 from a bank at 8% for 30 years.

32. What is Vince's monthly payment?

A. $440.40

B. $440.00

C. $7.34

D. $400.40

Correct Answer: A
Vince’s monthly payment is the amount from the table multiplied by the number of thousands. $7.34 x 60 =
$440.40. See Lesson 15, Buying a Home, Example 3, for a similar problem.

[Link] Page 16 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

33. What is Vince's annual payment?

A. $5,280.00

B. $5,284.80

C. $2,642.40

D. $4,804.80

Correct Answer: B
Vince’s annual payment is his monthly payment times 12. $440.40 x 12 = $5,284.80. See Lesson 15,
Buying a Home, Example 4, for a similar problem.

34. What is the total paid over 30 years?

A. $440.40

B. $5,284.80

C. $60,000

D. $158,544

Correct Answer: D
The total paid over 30 years is the annual amount times 30. $5,284.80 x 30 = $158,544.00. See Lesson
15, Buying a Home, Example 4, for a similar problem.

35. What is the total interest paid?

A. $52,000

B. $98,544

C. $4,800

D. $158,544

Correct Answer: B
The total interest paid is the total amount paid minus the original mortgage amount. $158,544.00 –
$60,000 = $98,544. See Lesson 15, Buying a Home, Example 4, for a similar problem.

[Link] Page 17 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

Multiple Choice
Use this information to answer questions 36–39.

You can rent an apartment for $350 a month, or you can buy a home with the same space
for $39,000. If you buy the home, you must withdraw $9,000 from your savings account,
where it is earning $630 annual interest, for the down payment. Your mortgage payment is
$265 per month. You estimate your other home ownership expenses will be $950, and
that you will save $1,170 in income taxes from tax deductible home expenses.

36. What is the gross cost of owning the home for one year?

A. $4,760

B. $5,300

C. $5,930

D. $4,130

Correct Answer: A
Your gross cost is the total of mortgage payments, investment interest lost, and other home ownership
expenses. $265 x 12 = $3,180. $3,180 + $630 + $950 = $4,760. See Lesson 15, The Cost of Owning a
Home, Example 4, for a similar problem.

37. What is your net cost of owning a home?

A. $4,130

B. $3,590

C. $4,760

D. $1,170

Correct Answer: B
The net cost of owning a home is the gross cost minus the tax savings. $4,760 – $1,170 = $3,590. See
Lesson 15, The Cost of Owning a Home, Example 4, for a similar problem.

[Link] Page 18 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

38. What is your annual rental cost?

A. $9,000

B. $350

C. $3,500

D. $4,200

Correct Answer: D
Annual rental cost is $350 x 12 = $4,200. See Lesson 15, The Cost of Owning a Home, Example 4, for a
similar problem.

39. What is the difference in cost between owning and renting for one year?

A. $4,200

B. $3,590

C. $4,760

D. $610

Correct Answer: D
The net cost of owning a home, $3,590 – the annual rental cost, $4,200 is a difference of $610. See
Lesson 15, The Cost of Owning a Home, Example 4, for a similar problem.

Multiple Choice
Use this information to answer questions 40–42.

A car that costs $18,300 is estimated to have a value of $12,900 in 3 years.

[Link] Page 19 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

40. What is the total depreciation over 3 years?

A. $5,400

B. $12,900

C. $1,800

D. $4,300

Correct Answer: A
Depreciation = retail cost – resale value. $18,300 – $12,900 = $5,400. See Lesson 15, Depreciating a
Motor Vehicle, Example 1, for a similar problem.

41. What is the average annual depreciation?

A. $12,900

B. $5,400

C. $4,300

D. $1,800

Correct Answer: D
Average annual depreciation = retail cost – resale value divided by the number of years. $18,300 –
$12,900 = $5,400 divided by 3 = $1,800. See Lesson 15, Depreciating a Motor Vehicle, Example 2, for
a similar problem.

42. What is the rate of depreciation?

A. 33%

B. 9.8%

C. 58%

D. .98%

Correct Answer: B
To find the rate of depreciation, divide the average annual depreciation by the original cost, and then
change this decimal to a percent. $1,800/$18,300 = .098 = 9.8%. See Lesson 15, Depreciating a Motor
Vehicle, Example 3, for a similar problem.

[Link] Page 20 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

Multiple Choice
Use this information to answer questions 43–44.

You can lease a car for $3,000 down and $220 a month for 48 months.

43. What is the annual cost of leasing this car?

A. $5,640

B. $880

C. $10,560

D. $2,640

Correct Answer: D
Annual lease costs are monthly costs x 12. $220 x 12 = $2,640. See Lesson 15, Cost of Operating a Motor
Vehicle, Example 5, for a similar problem.

44. What is the total cost of leasing for 48 months?

A. $2,640

B. $10,560

C. $13,560

D. $220

Correct Answer: C
48 x $220 = $10,560. $10,560 + $3,000 = $13,560. See Lesson 15, Cost of Operating a Motor
Vehicle, Example 5, for a similar problem.

Multiple Choice
Use this information to answer questions 45–48.

[Link] Page 21 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

Julius bought a car for $15,600 cash. His expenses for the first year were: gas and oil,
$875; maintenance, $179; insurance, $543; license, $283; loss of interest on investment,
5% of purchase price; depreciation, 14% of purchase price.

45. What was the amount of lost investment interest?

A. $780

B. $1,880

C. $15,600

D. $2,184

Correct Answer: A
$15,600 x 5% = $15,600 x .05 = $780. See Lesson 15, Cost of Operating a Motor Vehicle, Example 1,
for a similar problem.

46. What was the amount of depreciation?

A. $780

B. $1,880

C. $2,184

D. $15,600

Correct Answer: C
Depreciation = $15,600 x 14% = $15,600 x .14 = $2,184. See Lesson 15, Cost of Operating a Motor
Vehicle, Example 1, for a similar problem.

[Link] Page 22 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

47. What was the total operating cost for the first year?

A. $15,600

B. $4,844

C. $780

D. $2,184

Correct Answer: B
Total operating costs = $875 + $179 + $543 + $283 + $780 + $2,184 = $4,844. See Lesson 15, Cost of
Operating a Motor Vehicle, Example 1, for a similar problem.

48. If he drives 20,000 miles the first year, what is his average cost per mile?

A. $0.24

B. $2.40

C. $0.78

D. $0.11

Correct Answer: A
Average cost per mile is total operating costs divided by number of miles. $4,884/20,000 = $0.24. See
Lesson 15, Cost of Operating a Motor Vehicle, Example 2, for a similar problem.

Multiple Choice
Use this information to answer questions 49–50.

When Irene uses her own car for business, her employer pays her $0.20 per mile plus cost
of parking. Last week she drove her car a total of 394 miles for business, and had $21.20
in parking fees.

[Link] Page 23 sur 24

Business Math 1 - Theorem 16/05/2024 01:10

49. What was the total Irene was paid for mileage?

A. $21.20

B. $57.60

C. $83.53

D. $78.80

Correct Answer: D
394 x $0.20 = $78.80. See Lesson 15, Cost of Operating a Motor Vehicle, Example 8, for a similar
problem.

50. What was the total Irene was paid for car expenses last week?

A. $21.20

B. $78.80

C. $100.00

D. $57.60

Correct Answer: C
$78.80 + $21.20 = $100. See Lesson 15, Cost of Operating a Motor Vehicle, Example 8, for a similar
problem.

If you have questions about this unit evaluation or about this course, please contact Instructional
Services at (402) 472-3388 or by email at unhsteach@[Link].
([Link]

PREVIOUS PAGE NEXT PAGE

[Link] Page 24 sur 24