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 future value of a simple interest investment where 3% interest
paid quarterly for 3 years on $700.
A. | $763.00 | B. | $728.00 | C. | $742.00 | D. | $805.00 |
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2.
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Which investment will earn the most interest?
A. $200 invested for 4
years at a compound interest rate of 2%
B. $300 invested for 3 years at a simple interest
rate of 2%
C. $250 invested for 2 years at a compound interest rate of 2%
D. $200
invested for 4 years at a simple interest rate of 2%
A. | Option A | B. | Option B | C. | Option
C | D. | Option D |
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3.
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Determine the future value and the total interest earned for the
investment.
Principal (P) ($)
| Compound
Interest Rate per Annum (%) |
Compounding Frequency
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Term
| 9000 | 2.25 | semi-annually | 3 years | | | | |
A. | $9728.91; $728.91 | B. | $9696.45; $696.45 | C. | $9626.65;
$625.65 | D. | $9624.84; $624.84 |
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4.
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A $700 investment earns $37.63 in interest in 30 months. If the investment has
interest compounded quarterly, determine the interest rate.
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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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This portfolio was started 10 years ago. What is the current value of the
portfolio?
• A $1200 GIC that earns 2.65%, compounded quarterly
• Monthly deposits
of $250 into an account earning 1.75%, compounded monthly
A. | $35 945.21 | B. | $32 578.18 | C. | $33
500.69 | D. | $34 321.78 |
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7.
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Carlos was approved for a mortgage to finance his new house that he purchased
for $325 000. He made a down payment that was 20% of the purchase price. The mortgage is
compounded semi-annually at an interest rate of 4.2%. Carlos will repay the mortgage in 25 with
regular monthly payments. How much was the down payment?
A. | $65 000 | B. | $260 000 | C. | $13
650 | D. | $32 500 |
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8.
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Catherine wants to travel to England. The trip costs $3000 and she can afford
monthly payments of $150. She can finance her trip using one of her two credit cards.
• Card
1 charges 12.7%, compounded daily.
• Card 2 charges 18.1%, compounded daily, but she gets 3%
cash back on all purchases.
What is the least amount of interest Catherine can pay?
A. | $473.75 | B. | $300.00 | C. | $391.02 | D. | $563.75 |
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9.
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Joanna needs to buy textbooks for school that cost $780. She cannot afford them
now but she has two different options to finance the cost.
Option A: Get a loan from her friend
that must be paid back in 3 months with a $50 fee.
Option B: Use her credit card which charges
18.8%, compounded daily. She plans to make the minimum monthly payment of $10 on the debt for 3
months, then pay off the remaining debt in full.
What annual interest rate does the fee in Option
A equate to if you assume the interest compounds monthly?
A. | 25.1% | B. | 25.6% | C. | 28.2% | D. | 6.4% |
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10.
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The graphical solution to y <  x  is
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11.
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Which graph represents the solution to the
inequality  ?
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12.
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The solution set to the inequality 
is
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13.
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The solution set to the inequality 
is
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14.
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A rectangle is x centimetres wide and
2x centimetres long. If the area of the rectangle has to be between 46 cm2 and 140
cm2, what are the possible values of x?
A. |  £
x £ | C. | 
£ x £  | B. | 46 £ x £ 140 | D. | 23 £ x £
70 |
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15.
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Which quadratic inequality is represented by the
graph shown below?
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Short Answer
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1.
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Mahdia started this portfolio when her daughter was born.
• A $4000
bond earning 2.9%, compounded semi-annually
• Quarterly deposits of $650 into an account
earning 3.25%, compounded quarterly
When her daughter turned 8, Mahdia cashed in the whole
portfolio and bought a GIC earning 4.5%, compounded monthly. What will be the value of the GIC when
Madhia’s daughter turns 18?
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2.
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Vernon wants to buy a car that costs $24 000 and he has a two different options
to finance the purchase.
Option A: Finance the purchase through the dealership by making regular
quarterly payments for 9 years at an interest rate of 2.5%, compounded daily.
Option B: Finance
the purchase with a bank loan by making regular monthly payments for 9 years at an interest rate of
2.5%, compounded daily.
What is the total cost of the cheaper option?
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3.
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Jose needs a truck for his job. He can lease a truck for 4 years for $500 per
month and a down payment of $5600. He can purchase a new truck for $41 000 which would be financed
with a bank loan at an interest rate of 4.4%, compounded monthly, and a down payment of $6100. He
would pay off this loan with regular monthly payments over 4 years. He can also rent a truck at $85
per day. What is the total cost of renting the truck?
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4.
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Which of the given ordered pairs belong to the
solution to the inequality  ? Use a graph of the inequality to show your reasoning in
each case.
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5.
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Graph the quadratic inequality  .
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