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13 Questions Exam 1 - Mathematics with Applications | MAT 105, Exams of Mathematics

Material Type: Exam; Professor: Buskirk; Class: Mathematics with Applications; Subject: MAT Mathematics; University: Eastern Kentucky University; Term: Spring 2006;

Typology: Exams

2009/2010

Uploaded on 02/24/2010

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MAT 105 Exam 1a February 10, 2006
This exam contains 13 questions worth
100 points.
Name (print):
Student Number:
Multiple choice and short answer questions.
No work is required. Indicate the answer to a multiple choice question by clearly circling the letter corresponding to
the closest answer. Erase corrections completely.
1. (5 points) The interest rate used to compute the in-
terest on a CD each month is the
A. nominal interest rate
B. simple interest rate
C. periodic interest rate
D. annual interest rate
E. effective interest rate
F. none of the above
2. (5 points) Change 37
2500 to a percent.
A. 21.42857%
B. 2.142857%
C. 0.2142857%
D. 0.0214286%
E. 1.48%
F. 0.148%
G. 0.0148%
H. 0.000148%
3. (5 points) What number is 15%of47?
A. 3.133333
B. 0.031915
C. 7.05
D. 1.808511
E. 55.294118
F. 39.95
4. (5 points) You are investing $15,000 in a 10-year
CD at 5.9% APR for a child’s education. Complete
each sentence by circling the letter beside the choice
that makes the sentence true. No calculations are re-
quired.
(a) During the last 5years the CD will earn
A. less interest than the first 5years
B. the same interest as the first 5years
C. more interest than the first 5years
(b) The CD will earn more interest if
A. interest is compounded monthly.
B. it doesn’t matter which compounding.
C. interest is not compounded.
D. interest is compounded daily
5. (5 points) Simple interest
A. Is a form of usury.
B. Provides an accurate estimate of a 401-(k)
plan’s performance.
C. Is earned on the amount deposited together
with previously accrued interest.
D. Is calculated at the end of each period on a
savings account.
E. Is calculated by multiplying by 100%.
F. Can be used to help calculate a credit card
balance.
6. (5 points) Dale has decided to set up an IRA. How
much should she deposit every month into an ac-
count paying 6.25% interest compounded monthly
so that the account will be worth $25,000 in 18
years? Which of the following could be used to solve
this?
A. 25,000 = P M T 1 + 0.0625
12 12·18
1
0.0625
12 !
B. 25,000 = P M T 11 + 0.0625
12 12·18
0.0625
12 !
C. log 25,000 = log (1 + 0.0625 ·18)12·18
D. 25,000 = P(1 + 0.0625 ·18)
E. 25,000 = P1 + 0.0625
18 12·18
F. None of the above.
pf3

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MAT 105 Exam 1a February 10, 2006

This exam contains 13 questions worth 100 points.

Name (print): Student Number:

Multiple choice and short answer questions.

No work is required. Indicate the answer to a multiple choice question by clearly circling the letter corresponding to the closest answer. Erase corrections completely.

  1. (5 points) The interest rate used to compute the in- terest on a CD each month is the A. nominal interest rate B. simple interest rate C. periodic interest rate D. annual interest rate E. effective interest rate F. none of the above
  2. (5 points) Change 250037 to a percent. A. 21. 42857 % B. 2. 142857 % C. 0. 2142857 % D. 0. 0214286 % E. 1. 48 % F. 0. 148 % G. 0. 0148 % H. 0. 000148 %
  3. (5 points) What number is 15 % of 47? A. 3. 133333 B. 0. 031915 C. 7. 05 D. 1. 808511 E. 55. 294118 F. 39. 95
  4. (5 points) You are investing $ 15 , 000 in a 10 -year CD at 5. 9 % APR for a child’s education. Complete each sentence by circling the letter beside the choice that makes the sentence true. No calculations are re- quired. (a) During the last 5 years the CD will earn A. less interest than the first 5 years

B. the same interest as the first 5 years C. more interest than the first 5 years (b) The CD will earn more interest if A. interest is compounded monthly. B. it doesn’t matter which compounding. C. interest is not compounded. D. interest is compounded daily

  1. (5 points) Simple interest A. Is a form of usury. B. Provides an accurate estimate of a 401-(k) plan’s performance. C. Is earned on the amount deposited together with previously accrued interest. D. Is calculated at the end of each period on a savings account. E. Is calculated by multiplying by 100 %. F. Can be used to help calculate a credit card balance.
  2. (5 points) Dale has decided to set up an IRA. How much should she deposit every month into an ac- count paying 6. 25 % interest compounded monthly so that the account will be worth $ 25 , 000 in 18 years? Which of the following could be used to solve this? A. 25 ,000 = P M T

1 + 0.^062512

  1. (^062512)

B. 25 ,000 = P M T

1 + 0.^062512

  1. 0625 12

C. log 25,000 = log (1 + 0. 0625 · 18)^12 ·^18 D. 25 ,000 = P (1 + 0. 0625 · 18) E. 25 ,000 = P

1 +^0.^062518

F. None of the above.

  1. (5 points) Circle all that apply. The compound inter- est formula can be used to find the approximate value of a A. CD B. 401-(k) plan C. savings account D. credit card balance E. none of these 8. (5 points) Convert 0. 05 % to a decimal. A. 0. 00005 B. 0. 0005 C. 0. 005 D. 0. 5 E. 5. 0 F. 50

Problems with Work

Show work on each problem, unless otherwise indicated. No credit will be given for an answer with no work. Some- times appropriate work includes explaining briefly in good English. Partial credit will be given for work that is part of a correct solution. Report the answer to a word problem using a brief, complete English sentence with units. Work in the space provided.

  1. (12 points) A store puts a 53 % mark up on electronic merchandise. Find the store’s wholesale price of a computer if the customer pays $ 950.
  2. (12 points) Antonio is able to withdraw $ 64 , 000 from an savings account after investing $ 28 , 000 for 18 years. What annual interest rate, compounded quarterly did the investment earn?

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