Search Results

Math Topics

Quantitative Literacy

Financial Literacy

##
1
Percent Increase or Decrease, Markup and Discount

Find the markup rate for the given wholesale price and selling price.

a. wholesale price = $140, selling price = $210

b. wholesale price = $80, selling price = $108

c. wholesale price = $376, selling price = $752

d. wholesale price = $26,000, selling price = $26,728

##
2
Simple Interest

Find the simple interest earned, and corresponding balance, on the following bank deposits.

a. principal = $8,000, rate = 6.2%, time = 1.5 years

b. principal = $10,000, rate = 5.75%, time = 6 months

c. principal = $25,000, rate = 7.5%, time = 12 years

d. principal = $7,500, rate = 5.4%, time = 3 months

e. principal = $1,200, rate = 19.8%, time = 100 days

In each of the following simple interest problems, three of the four quantities are given. Find the missing quantity. Round all answers to two decimal places.

a. interest = $745, principal = $550, time = 12.3 years

b. interest = $1250, principal = $600, rate = 11.3%

c. interest = $869, rate = 6.3%, time = 8 months

d. interest = $65,000, rate = 7.2%, time = 1 year

Calculate the amount owed and the monthly payment for the following simple interest loans.

a. principal = $4,200, rate = 12.5%, time = 2 years

b. principal = $7,500, rate = 10%, time = 9 months

c. principal = $10,000, rate = 14.8%, time = 6 years

d. principal = $25,000, rate = 9.9%, time = 5 1/2 years

##
3
Compound Interest

Compute the balance and interest earned for each of the accounts, compounded annually.

a. principal = $12,500, rate = 6.5%, time = 5years

b. principal = $5,000, rate = 10.4%, time = 20years

c. principal = $1,250, rate = 7.45%, time = 10years

d. principal = $25,000, rate = 8.6%, time = 15years

Compute the balance and interest earned for each of the given accounts.

a. principal = $4,000, rate = 6.8%, time = 6 years, compounded monthly

b. principal = $10,000, rate = 11.5%, time = 10 years, compounded quarterly

c. principal = $22,400, rate = 8.3%, time = 4 years, compounded daily

d. principal = $15,000, rate = 9.8%, time = 8 years, compounded semiannually

Calculate the future price of the item with the given inflation/deflation rate.

a. gasoline: price = $3.65/gallon, rate = 6.8%, time = 25 years

b. college tuition: price = $1300/semester, rate = 13.5%, time = 15 years

c. stock price: price = $74/share, rate = 21.3%, time = 5 years

d. computer: price = $1350, rate = −8.6%, time = 12 years

Find the present value of the following future amounts.

a. treasury bill: value = $15,000, rate = 5.6%, time = 4 years, compounded daily

b. zero-coupon bond: value = $20,000, rate = 6.1%, time = 10 years, compounded monthly

c. retirement plan: value = $800,000, rate = 8.4%, time = 30 years, compounded quarterly

d. timber land: value = $12.8 million, rate = 4.6%, time = 45 years, compounded yearly