Name: ________________________ Class: ___________________ Date: __________
ID: A
chap 5/6 practice Short Answer 1. Linwood Johnson has a check for $1,395.50 and a check for $876.25. He also has $10 in one-dollar bills. He would like to receive $475 in cash and deposit the rest of the money in his savings account. What is the total deposit? 2. Nine thousand seven hundred fifty-seven and 3. Forty one thousand eighty seven and
50 100
32 100
dollars as a numeral is:
dollars as a numeral is:
4. The previous balance shown on Herman Taylor’s savings account statement is $1,976.21. He receives $12.39 in interest, makes $16.46 in deposits, and has $898.07 in withdrawals. What is his new balance? 5. The previous balance shown on Hector Cortez’s savings account statement is $706.31. He receives $4.39 in interest, makes $876.46 in deposits, and has $200.06 in withdrawals. What is his new balance? 6. Julie Fargus deposits $366 in a savings account at City Bank. The account pays an annual interest rate of 5 percent. She makes no other deposits or withdrawals. After three months the interest is calculated. How much simple interest does her money earn? 7. Oscar Montez’s savings account has a principal of $7,201. It earns 6 percent interest compounded quarterly. What is the amount in the account at the end of the second quarter? 8. Chin-Lin Pon has a principal of $900 in her savings account. It earns 6 percent interest compounded quarterly. What is the amount in the account at the end of the third quarter? Figure 5.1. Use this table with the question(s) below, as needed. Compound Interest—Amount of $1.00 Total Interest Periods 1 2 3 4 5 6 7 8
Interest Rate per Period 1.250% 1.01250 1.02515 1.03797 1.05094 1.06408 1.07738 1.09085 1.10448
1.375% 1.01375 1.02768 1.04182 1.05614 1.07066 1.08538 1.10031 1.11544
1.500% 1.01500 1.03022 1.04567 1.06136 1.07728 1.09344 1.10984 1.12649
9. Use Figure 5.1. Justin Alvarez opened an account at Midwest Bank by depositing $621. The bank pays 5.5 percent interest compounded quarterly. He makes no other deposits or withdrawals. How much will there be in the account after 2 years?
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Name: ________________________
ID: A
Figure 5.2. Use this table with the question(s) below, as needed.
Day 21 22 23 24 25
Amount of $1.00 at 5.5% Compounded Daily, 365-Day Year Amount Day Amount 1.00316 31 1.00468 1.00331 32 1.00483 1.00347 33 1.00498 1.00362 34 1.00513 1.00377 35 1.00528
10. Use Figure 5.2. John Hunt deposited $1,010 in a savings account that pays 5.5 percent interest compounded daily. How much interest did he earn after 33 days? Critical Thinking 11. Describe compound interest and explain why it is preferable to simple interest. 12. Why is saving money in a savings account preferable to putting the money you earn in a box in your closet? 13. What information is typically included on a sales receipt? 14. Describe the benefit of unit pricing. 15. Mary Farmer purchased school supplies for $33.62, an atlas for $23.95, and a CD for $13.78 at Books Express. For all purchases she must pay the state sales tax of 7.5 percent and the county tax of 0.5 percent. What is the tax on her purchase? 16. Martin Pincher purchased a snow shovel for $28.61, a winter coat for $23.27, and some rock salt for $7.96. He must pay the state tax of 5 percent, the county tax of 0.5 percent and the city tax of 2.5 percent. What is the total purchase price? 17. Thompson Alberts purchased a pack of 12 pencils for $4.99. What is the unit price per pencil rounded to the nearest tenth of a cent? 18. Duke Edwards purchased six quarts of orange juice for $13.10. Find the unit price per quart rounded to the nearest cent. 19. Jefferson Todd can buy 2 gallons of ice cream for $3.87, 3 gallons for $4.10, or 1 gallon for $1.98. What is the unit price of the best buy, rounded to the nearest tenth of a cent? 20. Rhea Franken can buy one dozen cookies for $5.65, two dozen for $11.30, or three dozen for $16.95. Which is the best buy? 21. Mary Lou Mason purchased baby bottles for $4.56, baby formula for $12.45, and a pacifier for $2.13. For all purchases she must pay the state sales tax of 6.5 percent and the county tax of 1.5 percent. What is the tax on her purchases? 22. Wally Martin purchased a VCR for $154.35. He received a $9.95 rebate from the manufacturer and an $8.95 rebate from the store. What is the final price? 23. Jeralyn Weller is ready to purchase a new mail box. It is regularly priced at $87.99. The sale price is $68.54. What is the markdown?
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Name: ________________________
ID: A
24. Julian Nestor is ready to purchase a new stroller. It is regularly priced at $127.99. The sale price is $88.54. What is the markdown? 25. The regular selling price of a laptop computer is $897.55. The markdown rate is 27 percent. What is the sale price?
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ID: A
chap 5/6 practice Answer Section SHORT ANSWER 1. ANS: $1,806.75 DIF: Average 2. ANS: $9,757.32
REF: Section 5-1
DIF: Average 3. ANS: $41,087.50
REF: Section 5-2
DIF: Average 4. ANS: $1,106.99
REF: Section 5-2
DIF: Average 5. ANS: $1,387.10
REF: Section 5-3
DIF: Average 6. ANS: $4.58
REF: Section 5-3
DIF: Average 7. ANS: $7,418.66
REF: Section 5-4
DIF: Average 8. ANS: $941.11
REF: Section 5-5
DIF: Average 9. ANS: $692.69
REF: Section 5-5
DIF: Average 10. ANS: $5.03
REF: Section 5-6
DIF:
Average
REF: Section 5-7
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ID: A 11. ANS: When your new balance is used to calculate the interest for the next interest period and the next interest period and so on, your interest is compounding. You earn more when your interest compounds than you do with simple interest because your interest earns interest. DIF: Average REF: Section 5-5 12. ANS: When money is placed in a savings account, it earns interest. This means the amount of money in your account increases even if you don’t add to it. Money in a box in your closet will not increase in value. Also, money is safer in a bank. A box in your closet could be stolen or destroyed by fire, and you would have no way of recovering the money. DIF: Basic REF: Section 5-1 13. ANS: The sales receipt usually includes the name of the store, the date of the purchase, the selling price of each item purchased, the total selling price, any sales tax, and the total purchase price. DIF: Average REF: Section 6-2 14. ANS: Unit pricing is a system that allows shoppers to quickly and easily compare the prices of various items. Shoppers can use the information to decide which brand or size of a product is the better buy based solely on price per unit, such as price per ounce. DIF: Average 15. ANS: $5.71
REF: Section 6-3
DIF: Average 16. ANS: $64.63
REF: Section 6-1
DIF: Average 17. ANS: $0.416
REF: Section 6-2
DIF: Average 18. ANS: $2.18
REF: Section 6-3
DIF: Average REF: Section 6-3 19. ANS: $1.367 (Three gallons for $4.10.) DIF: Average REF: Section 6-4 20. ANS: All are the same unit price, $0.471 per unit. DIF:
Average
REF: Section 6-4
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ID: A 21. ANS: $1.53 DIF: Average 22. ANS: $135.45
REF: Section 6-1
DIF: Average 23. ANS: $19.45
REF: Section 6-5
DIF: Average 24. ANS: $39.45
REF: Section 6-6
DIF: Average 25. ANS: $655.21
REF: Section 6-6
DIF:
Average
REF: Section 6-7
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