1. A $40,000 loan at 4% dated June 10 is due to be paid on October 11. Calculate the amount of interest (assume ordinary interest).
A. $2,500.00
B. $546.67
C. $105.33
D. $503.00
2. FUTA tax is paid
A. by the employer.
B. by an employee.
C. by both the employee and the employer.
D. only weekly.
3. A simple discount note results in
A. the same interest costs as a simple interest note.
B. interest that's deducted when note is paid back.
C. interest that's deducted in advance.
D. lower interest costs than a simple interest note.
4. A $120,000, 5%, 200-day note dated June 6 is discounted on October 8. The discount period is _______ days.
A. 67
B. 142
C. 124
D. 76
5. At the end of the summer, Walgreens advertised blow-up pools for 66% off the regular price. Jeff Jones saw a pool with a regular price of $49.99. What is the dollar markdown?
A. $33.39
B. $39.29
C. $32.99
D. $33.99
6. Which one of the following statements is true about the U.S. Rule?
A. It allows borrowers to receive interest credit.
B. It's never used by banks.
C. It's used by only banks.
D. It's hardly used today.
7. Jasper works at Panera Company for $11.25 per hour plus a commission of 2% of her sales. Assuming Jasper worked 26 hours last week and had sales of $2,610, what is her gross pay?
A. $351.20
B. $342.00
C. $344.70
D. $290.50
8. In calculating the bank discount when discounting an interest-bearing note, which one of the following is not used in the calculation?
A. Discount period
B. Principal proceeds
C. Bank discount rate
D. Maturity value
9. Black & Decker Manufacturing sold a set of saws to True Value Hardware. The list price was $3,800. Black & Decker offered a chain discount of 8/3/1. What is the net price of the saws?
A. $3,391.12
B. $3,357.21
C. $3,537.12
D. $3,537.21
10. (1 + markup percent on cost) × cost equals the
A. markup.
B. selling price.
C. cost at wholesale.
D. cost at retail.
11. When markups are based on the selling price, the selling price is
A. the portion.
B. 100% + cost percent.
C. 100%.
D. cost - markup.
12. Jay discounts a 100-day note for $25,000 at 13%. The effective rate of interest to the nearest hundredth percent is _______ %.
A. 13.48
B. 13.03
C. 13.49
D. 13.02
13. Mia Kaminsky wants to attend Riverside Community College. She'll need to have $25,000 six years from today. Mia is wondering what she'll have to put in the bank today so that she'll have $25,000 six years from now. Her bank pays 5% compounded semiannually. Using the tables in the Business Math Handbook that accompanies the course textbook, determine the amount Mia needs to deposit today.
A. $18,590
B. $18,950
C. $33,226
D. $33,622
14. 200 days from March 3 is
A. September 19.
B. September 20.
C. September 18.
D. September 17.
15. Bill's Furrier marks up mink coats $3,000. This represents a 50% markup on cost. What is the cost of the coats?
A. $4,500.
B. $9,000.
C. $6,000.
D. $1,500.
16. With interest of $1,832.00 and a principal of $16,000 for 206 days, use the ordinary interest method to determine the rate.
A. 10%
B. 12%
C. 20%
D. 2%
17. What is the effective rate of a $30,000 non-interest-bearing simple discount 5%, 60-day note?
A. 5.04%
B. 5.14%
C. 6.0%
D. 5%
18. What is the net price equivalent rate of 9/15/18?
A. .36427
B. .36573
C. .63573
D. .63427
19. An invoice dated March 6 with terms of 1/10, EOM results in the end of the discount period on
A. May 30.
B. April 30.
C. May 31.
D. April 10.
20. To date, Jay Ward has cumulative earnings of $107,600. This week he is paid $3,000. What is the total amount of Social Security tax for this week? Assume a rate of 6.2% on $110,100 for Social Security and 1.45% for Medicare.
A. $57.66
B. $186.00
C. $180.00
D. $155.00
21. The taxable earnings column of a payroll register records
A. the actual tax.
B. wages, actual tax, and estimated tax.
C. what wages will be taxed.
D. the estimated tax.
22. Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8%. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?
A. $187.18
B. $187.17
C. $189.78
D. $188.22
23. Differential pay schedule is based on
A. FICA.
B. gross pay.
C. different levels of performance.
D. FUTA.
24. Jim Smith is a salesman who receives a $1,100 draw per week. He receives a 12% commission on all sales. Sales for Jim were $205,000 for the month. Assuming a four-week month, Jim's commission after the draw is
A. $26,400.
B. $23,500.
C. $20,200.
D. $24,600.
25. Lee Wong is a sales clerk at Sears. She is paid $8.00 per hour plus a commission of 4% on all sales. Assuming Lee works 39 hours and has sales of $4,000, her gross pay is
A. $427.
B. $321.
C. $312.
D. $472.