2 chapter assignments, 2 xtra credits, 1 practice final and the Final on basic biz math

These assignments need to get done by the end of 8/22 and the final needs done by 8/24. Please make a bid

Chapter 10 Assignment

10 points

Due by the end of Wednesday, 8/22

To be eligible for partial points, you must show your work!

1.
Given the following, and using the ordinary interest method, solve for the Principal (P). Round to the nearest cent. (2 points)

I = $79

R = 4.5%

T = 30 days

2.
Given the following solve for the Rate (R). (2 points)

I = $103

P = $2,000

T = 4 months

3.
Given the following solve for the Time (T) in days. Round to the nearest day. (2 points)

I = $64

P = $2,400

R = 3.75%

4.
Recently Mr. Robie, the owner of the Black Cat Bakery, purchased some equipment for the Bakery. Mr. Robie purchased $24,000 in additional equipment, and made a cash down payment of $2,400. He secured a loan for the remaining $21,600, with an interest rate of 4.5%, and a time period of 90 days. (4 points)

A)
Using ordinary interest, how much will he need to pay back at the end of 90 days?

B)
Using exact interest, how much will he need to pay back at the end of 90 days? Round to the nearest cent.

Chapter 11 Assignment

10 points

Due by the end of Wednesday, 8/22

To be eligible for partial points, you must show your work!

1.
Given the following, calculate A) the Maturity Value of the Note, B) the Discount Period, and C) the Proceeds, using
ordinary
interest.

Principal	Rate	Time	Date of Note	Date of Discount	Discount Rate
$7,900	3.75%	120 Days	August 15	October 12	4.25%

2.
Francine Stevens purchased a $10,000 13-week Treasury Bill for $9,837

A.
What was the amount of Interest?

B.
What was the Effective Rate of Interest? Round to the nearest tenth percent.

Practice Final, Summer 2012
4

Practice Final, Summer 2012
3

Business Math 130
Name ____________________

Practice Final: 50 points

Due by the end of Wednesday, 8/22

To be eligible for partial points you must show your work!

1.
Solve for the Rate (R), and round to the nearest tenth percent. (Hint: use the Portion formula.) (5 points)

66 is _______% of 900

2.
Solve for the Base (B), and round to the nearest tenth. (5 points)

67 is 30% of ________

3.
Bill’s TV buys a TV from a wholesaler, with a List Price of $600, and a trade discount of 32 percent. What is the Trade Discount Amount, and the Net Price of the TV? (5 points)

4.
Al’s Supply sold a chain saw to Mark’s Lumber. The List Price was $1,250. Al’s Supply offered a chain discount of 6/3/1. What was the net price of the chain saw? (5 points)

5.
Al Smith knows his goods are marked up 36 percent on Cost. If a TV cost Al $280, what would the Selling Price be? (5 points)

6.
A video game sells at Arnolds for $199.95. Arnolds marks the game up at 30 percent of Selling Price. What was the Cost of the video game to Arnold? (5 points)

7.
Mr. Robie owns and operates the Black Cat Bakery, and takes out a loan to purchase new equipment for his bakery. He gets a loan for $20,000 at 9-1/2 percent for 180 days. A) What amount will Mr. Robie repay by the maturity date using ordinary interest? and B) What is the amount owing using the exact interest method? (5 points)

8.
Using the information given in problem #7 above, if Mr. Robie makes a payment of $12,000 on day 90, using the U.S. Rule, what will the adjusted balance be after the partial payment? (5 points)

9
On May 12, Joy Company accepted a $1,000, 60-day, 6 percent note from Abe Wills, granting a time extension on a past-due account. Joy discounted the note at the bank at 9 percent on May 28. Using ordinary interest, Calculate Joy Company’s proceeds. (5 points)

10.
Molly Lenny bought a $10,000 13-week Treasury Bill at 13%. What is her Effective Rate (ER)? Using ordinary interest and round to the nearest hundredth percent. (5 points)

LU 10-3 Practice Quiz (p. 263)

Polly Flin borrowed $5,000 for 60 days at 8%. On day 10, Polly made a $600 partial payment. On day
40, Polly made a $1,900 partial payment. What is Polly’s ending balance due under the U.S. Rule
(assume a 360-day year)?

Given:
P = $5,000
R = 8% = .08
T = 60 days

On day 10: Partial Payment of $600 and 10 days of interest

I = P x R x T
I = $5,000 x .08 x (10/360)
I = $11.11

According to the U.S. Rule, accrued interest must be paid before any payment to principal.

Payment to Principal = $600 – $11.11 = $588.88 to apply to the Principal
Adjusted Balance = $5,000 – $588.88
Adjusted Balance = $4,411.11

On day 40: $1,900 partial payment and 30 days of interest

I = $4,411.11 x .08 x (30/360)
I = $29.41
Payment to Principal = $1,900 – $29.41 = $1,870.59 to Principal
Adjusted Balance = $4,411.11 – $1,870.59
Adjusted Balance = $2,540.52

At Maturity: 20 days of interest

I = $2,540.52 x .08 x (20/360)
I = $11.29
MV = Adjusted Balance + Interest
MV = $2,540.52 + $11.29
MV = $2,551.81

Answer: Polly’s ending balance due at maturity is $2,551.81.

Chapter 11 Extra Credit

5 points

Due by the end of Wednesday, 8/22

To be eligible for partial points you must show your work!

Every year, Mr. Robie of the Black Cat Bakery is asked to provide a variety of cookies for a local grocery store chain, Save-O-Store for the Labor Day holiday. Save-O-Store operates several grocery stores, serving a large local community. In the week preceding the Labor Day holiday, Mr. Robie supplied $2,200 worth of cookies to Save-O-Store locations. He invoiced Save-O-Store for the goods with a due date of September 15. On September 12, Save-O-Store, experiencing cash flow difficulties, asks Mr. Robie if he will accept a 60 day Note, at 4.75% interest. Mr. Robie accepts the Note dated September 12.

A few weeks later, Mr. Robie finds himself (and the Bakery) to be short of cash. He goes to his local community bank, Healthy Bank, to ask them to discount his Note. Healthy Bank agrees to discount the note on October 2, at a 5% discount rate.

Question: What will Mr. Robie’s proceeds be (use ordinary interest)? Remember to read the problem very carefully!