4.9. Chapter 6 Test – Contemporary Mathematics | OpenStax
Chapter Test
- A 15% simple interest loan of $2,000 is taken out for 75 days. How much is owed when the loan is due?
- What is the future value of a $15,000 investment made at 4.65% interest compounded yearly for 10 years?
- Apply the 50-30-20 budget philosophy to a monthly income of $3,920.
- $2,500 is deposited in an account that bears 5.25% interest compounded quarterly for 15 years. What is the return on investment for that investment? Round to two decimal places if necessary.
- How much per month must be paid into an ordinary annuity so its future value is $150,000 after 10 years if the annuity earns 3.85% interest compounded monthly?
- Bethanie’s employer matches up to 7% of annual salary for deposits into the company-sponsored IRA. Bethanie earns $62,400 annually. She deposits $8,000 annually inter her IRA. How much does the company deposit in Bethanie’s IRA?
- If $360 is deposited monthly in a mutual fund that is expected to earn 9.35% compounded monthly, how much will the mutual fund be worth after 23 years?
- A $14,250, 4-year loan is taken out at 9.15% interest. What are the monthly payments for the loan?
- Using the amortization table below, how much total interest has been paid after payment 20?
Figure A spreadsheet labeled as amortization schedule calculator. The sheet calculates the repayment for the loan amount of $17,500.00 for an interest rate of 8.25 percent annually and the monthly payment is $356.93. The factors include calculations such as month, payment, principal, interest, total, and interest and balance. - What is the maximum amount of federal subsidized and unsubsidized loans per year for an independent student in a graduate program?
- Braden takes out a private student loan for $6,250 in his second year of his undergraduate IT program. He begins paying the loan after 39 months. If Braden’s interest rate was 8%, how much is his balance when he begins to pay off the loan?
- The billing cycle for Therese’s credit card is July 7 to August 6 (31 days). The interest rate on the card is 17.9%. The balance on her card at the start of the billing cycle is $925.00. The table below has her transactions for the billing cycle. What is her balance due at the end of the cycle?
Date Activity Amount 7-Jul Billing Date Balance $925.00 10-Jul Child Care $850.00 10-Jul Gasoline $51.00 12-Jul Food $135.50 18-Jul Payment $750.00 18-Jul Pizza $35.00 18-Jul Gift $25.00 21-Jul Food $121.75 30-Jul Gasoline $47.50 1-Aug Department store $173.00 4-Aug Food $98.00 - The cost of a car is $45,750. The residual price after 2 years is $28,822.50. What is the monthly depreciation for the car?
- Find the payment for a 3-year lease on a car if the price of the car is $30,000, the residual price of the car is $20,000, and the APR is 8.5%.
- What are the monthly payments, excluding escrow, for a 20-year mortgage for $131,500 at 5.15% interest?
- What are the monthly payments, including escrow, for a 20-year mortgage for $131,500 at 5.15% interest, with property taxes of $3,170 per year and homeowner’s insurance of $715 every 6 months?
- If a person earns $2700 gross on a paycheck, how much is taken out in FICA taxes?
- Find the taxable income for a person who has $81,200 in earnings, $1,250 reported on a 1099-INT for a savings account, $5,400 reported on a 1099-MISC for a contract job they did, paid $5,250 in mortgage interest, paid $4,700 in property taxes, and has $4,200 in bond interest.
- Find the federal income tax owed by a person filing single who has a taxable income of $114,750. Use the table below to determine the taxes.
Bracket Lower Income Limit Upper Income Limit Tax Rate 1 0 $10,275 10% 2 $10,276 $41,775 12% 3 $41,776 $89,075 22% 4 $89,076 $170,050 24% 5 $170,051 $215,950 32% 6 $215,951 $539,900 35% 7 $539,901 37% - If a person owes $20,000 in federal income tax, but qualifies for $4,000 in child tax credit and $8,000 for child and dependent care credit, how much federal tax does the person actually pay?