Multiple Choice
Identify the choice that best
completes the statement or answers the question.
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1.
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Determine the interest earned on a simple interest investment where 1.75%
interest is paid weekly for 5 years on $260.
A. | $18.20 | B. | $20.80 | C. | $22.75 | D. | $15.60 |
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2.
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Principal of $1750 is invested at 2% simple interest, paid semi-annually, for
1.5 years. What is the rate of return?
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3.
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How many compounding periods are there for $1000 invested for 6 years at 4.2%
compounded semi-annually?
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4.
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Determine the term of a $26 000 investment with an interest rate of 2.95%,
compounded monthly, if the future value is $100 000.
A. | 44.44 years | B. | 45.72 years | C. | 43.20
years | D. | 40.86 years |
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5.
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A 10-year bond has an interest rate of 5.5%, compounded annually, and a future
value of $1000. Determine the ratio of future value to present value.
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6.
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Gila took out a loan from the bank to buy a new car that costs $22 500. The bank
offered her a simple interest rate of 4.3%. The loan is to be repaid in 5 years. How much interest
did Gila need to pay?
A. | $4837.50 | B. | $967.50 | C. | $5386.17 | D. | $5271.80 |
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7.
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A loan worth $10 000 is due in 5 years. Which compounding period will result in
the highest amount of interest?
A. | annually | B. | quarterly | C. | monthly | D. | daily |
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8.
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Kristina took out a bank loan for $60 000 that must be repaid with regular
monthly payments of $1100. The bank charges her an interest rate of 3.0%, compounded monthly. How
many payments will Kristina have to make to pay off the bank loan?
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9.
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A company replaces its trucks after the trucks have been used for 8 years. The
company uses a depreciation rate of 35%. If after 3 years of use a truck is worth $27 000, what was
the truck worth when it was purchased?
A. | $98 315.89 | B. | $81 000.00 | C. | $629
737.61 | D. | $232 700.32 |
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10.
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The graphical solution to y <  x  is
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A sports store makes a profit of $50 on every
pair of cross-country skis sold and $125 on every set of snowshoes sold. The manager’s goal is
to have a profit of at least $700 a day from the sales of these two items.
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11.
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Which graph represents the combinations of ski and
snowshoe sales that will meet or exceed this daily sales goal?
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800 people will attend a concert if tickets cost
$20 each. Attendance will decrease by 30 people for each $1 increase in the price. The concert
promoters need to make a minimum of $12 800.
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12.
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What quadratic inequality represents this
situation?
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13.
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Which graph represents the solution to the
inequality  ?
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14.
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Which graph represents the solution to the
inequality  ?
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15.
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The solution to the inequality 
is
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Short Answer
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1.
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Li Ming is planning to buy a house in 10 months. She intends to spend no more
than $20 000 on a down payment. She has $18 000 to invest in a mutual fund that compounds
interest monthly. What average rate of interest will Deborah need in order to meet her goal?
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2.
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This portfolio was started 8 years ago. How much interest has the portfolio
earned?
• Monthly deposits of $250 into an account earning 1.5%, compounded
monthly
• A $3750 investment averaging 2.85%, compounded quarterly
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3.
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Heidi needs a place to live. She has two different options. She can lease an
apartment for $2800 per year. Each lease contract has a length of 2 years and every contract requires
a down payment of $1100. She can also purchase a new house for $245 000 and finance the purchase with
a mortgage worth 92% of the total cost that requires regular monthly payments. The mortgage has an
interest rate of 4.0%, compounded semi-annually, and it has a term of 20 years. If Heidi were to live
in the same place for 20 years, what is the total cost of leasing the apartment?
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Problem
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1.
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A groundskeeper is asked to plant flowers in a bed
in front of an office building. During a sale at the garden store, a flat of marigolds costs $8 and a
flat of petunias costs $9. The store is paying the taxes as part of the sale. The groundskeeper can
spend at most $120.
a) What inequality models this situation?
b) Graph the
inequality and discuss the restrictions on the variables.
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2.
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The height, h, in metres, of a golf ball
t seconds after it is hit can be modelled by the function  . When is the height of the
ball greater than 15 m?
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