Business Mathematics Assignment -
1. Complete the table finding the missing quantities.
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Merchandise
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Cost (C)
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Selling Price (S)
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Markup
(M)
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Markup Rate on Cost (R)
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Markup Rate on Selling Price (r)
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Watch
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$26.97
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$49.95
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Sleeping Bag
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$89.97
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$61.98
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Automobile
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$19,869.00
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$1,787.00
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Diamond
Ring
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$4,250.00
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31.8%
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Battery
Charger
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$54.39
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81.5%
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Camera
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$107.97
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85.2%
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2. A furniture store sells a kitchen table that cost $366.00 at a markup rate of 45% on the selling price. What is the selling price of the table? What is the markup rate on cost?
3. Amy Dobson sells cosmetics on a part-time basis through a home distributorship. If Amy's retail sales average $500.00 per week with an average markup rate on selling price of 30%, how much would Amy make in a year?
4. Complete the following table by finding the missing quantities.
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Merchandise
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List Price (L)
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Sale Price (S)
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Discount (D)
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Discount Rate (r)
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Wheel
alignment
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$45.99
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$36.79
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Steak dinner
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$10.85
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$8.75
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Recliner chair
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$349.99
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$10.63
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Sneakers
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$69.97
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20%
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CD player
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$189.00
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30%
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Couch
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$849.00
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16.5%
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Beach towel
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$10.88
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$4.99
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5. A catalog showroom gives the list price on an electric typewriter as $345.00 and their price as $229.97. A mail order catalog has the same typewriter for $297.99 plus a $4.14 shipping charge. Find the discount rate for each outlet based on the catalog showroom's list price.
6. Find the interest earned in the following savings accounts. (Assume there were no deposits or withdrawals during the year)
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Balance at beginning of year
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Balance at the end of year
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Answer
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$547.12
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$562.69
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$1250.00
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$1302.06
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$8742.15
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$9169.86
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7. Find the interest earned in the following passbook savings account. (Assume there were no withdrawals during the year)
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Balance at beginning of year
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Deposits during year
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Balance at the end of year
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Answer
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1
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$378.56
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$150.00
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$769.85
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$250.00
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2
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$874.06
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$525.00
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$1852.15
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$400.00
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3
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$764.36
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$210.00
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$1653.23
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$375.00
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$280.00
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8. Find the simple interest on a deposit of $100.00 for 180 days at 5%. (Assume a non-leap year)
9. Find the simple interest on a deposit of $1000.00 for 45 days at 6%. (Assume a non-leap year)
10. Find the simple interest on a deposit of $700.00 for 90 days at 2.75%. (Assume a leap year)
11. Find the simple interest on a deposit of $250.00 for 283 days at 15%. (Assume a leap year)
12. Find the number of days in the interest period from November 28, 1993 to February 2, 1994.
13. Find the simple interest on $1000.00 from November 30, 1991 to January 20, 1992 at 3.5%.
14. Find the annual percentage rate for $11.56 simple interest on $1250.00 for 90 days. Round your answer to the nearest hundredth of a percent and assume it is a non-leap year.
15. Find the annual percentage rate for $75.00 simple interest on $1200.00 for one year. Round your answer to the nearest hundredth of a percent and assume it is a leap year.
16. Find the annual effective yield for a treasury note that accumulated $94.16 interest on $2000.00. Assume that the interest period is one year.
17. Find the annual effective yield after taxes for the savings plan in exercise 20. Assume that the interest is being earned by a person in a 30% tax bracket and that this plan is not tax-exempt.
18. The formula A=P + PRT=P(1 + PRT) can be solved for P to yield the formula P=A/(1 + RT)=A/[1 + R(D/365)]. Use this formula in both parts of the question to find the principal required to produce the given amount.
- Betty Roth needs $1000.00 in 90 days. If her money earns 5.5% simple interest, how much should she invest now so that the amount after 90 days will be $1000.00? (Assume it is not a leap year)
- How much should be invested at 3.75% simple interest so that the balance after one year is $6000.00?
19. Taking into account the below find the following: a) complete the quarterly balance record for one year and b) find the annual effective yield.
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Quarter
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Principal
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Interest
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Balance
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1
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$500.00
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2
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3
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4
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Annual Effective Yield:
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20. Complete the following table for a deposit of $500.00 at 3% for one year.
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1
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4
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12
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365
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Continuously
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Number of compoundings per year
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Balance after
one year
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Annual effective yield
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21. Complete the following table for a deposit of $300.00 at 5.5% for two years.
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1
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4
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12
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365
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Continuously
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Number of compoundings per year
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Balance after two years
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22. Complete the following table for a deposit of $10,000.00 at 4.5% for 25 years.
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1
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4
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12
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365
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Continuously
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Number of compoundings per year
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Balance after twenty five years
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23. Marcia Nelson has a four-year savings certificate for $1000.00 compounded monthly at 5%. The penalty for early withdrawal is the loss of interest for the three most recent months. What penalty would Marcia be given if she withdraws the money at the end of the third year?
24. If a certain principal P is invested now at 9% compounded monthly, the amount after N compoundings is A=P(1 + 0.09/12) AN=P(1.0075))AN. By trial and error, using the yAx key, approximate the time necessary to a) double the original investment, and b) triple the original investment.