Spring
MTH 143 Final Exam Review
page 1 out of 9
1.
If $5,000 is loaned for 9 months at 7% annual rate, how much simple interest is earned?
(A) $262.50
(B) $3150
(C) $5262.50 (D) $8150
(E) None of these
2.
A loan (simple interest loan) of $4,000 was repaid at the end of 8 months with a check of $4,270.
What annual rate of interest was charged?
(A) 8.44%
(B) 10.13%
(C) 9.48%
(D) 7.9%
(E) None of these
3.
If $2,000 is invested at 7% compounded quarterly, what is the amount after 5 years?
(A) $2143.72
(B) $2246.73 (C) $4246.73 (D) $2829.56 (E) None of these
4.
In a suburb of a city, housing costs have been increasing at 5.2% per year compounded annually for
past 8 years.
A house with a $116,000 value now would have had what value 8 years ago?
(A) $77,327.16
(B) $174,013.79
(C) $96,686.73
(D) $38,672.84
(E) None of these
5.
How much is the monthly payment for a fouryear $9000 car loan?
Assume an annual interest rate of
8.9%.
(A) $6312.54
(B) $223.54
(C) $156.79
(D) $2291.87
(E) None of these
6.
Recently, Guarantee Life offered an annuity that pays 6.65% compounded quarterly.
If $500 is
deposited into this annuity every quarter, how much is in the account after 10 years?
(A) $952.78
(B) $58,632.58
(C) $28,086.87
(D) 14,622.14 (E) None of these
7.
Parents have set up a sinking fund in order to have $120,000 in 15 years for their children’s college
education.
How much should be paid semiannually into an account paying 6.8% compounded
semiannually?
(A) $2,363.07
(B) $6,443.07
(C) $1,496.39
(D) $4,000
(E) None of these
8.
American General offers a 10year ordinary annuity with a guaranteed rate of 6.65% compounded
annually.
How much should you pay for one of these annuities if you want to receive payments of
$5,000 annually over the 10year period?
(A) $67,472.11
(B) $35,693.18
(C) $370.52
(D) $695.52
(E) None of these
9.
If you buy a computer directly form the manufacturer for $2,500 and agree to pay it in 48 equal
installments at 1.25% interest per month on the unpaid balance, how much are your monthly
payments?
(A) $72.64
(B) $30.33
(C) $52.08
(D) $69.58
(E) None of these
10.
A family has a $75,000, 30year mortgage at 8.1% compounded monthly.
Find the monthly payment.
(A) $605.32
(B) $555.56
(C) $49.31
(D) $208.33
(E) None of these
11.
Which of the following investing accounts offer the highest effective rate?
(A) Account A: investing at 12% compounded quarterly.
(B) Account B: investing at 10% compounded monthly.
(C) Account C: investing at 11% compounded semiannually.
(D) Account D: investing at 10% compounded annually.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
This is the end of the preview.
Sign up
to
access the rest of the document.
 Fall '04
 john
 Following, Elementary algebra

Click to edit the document details