Business Math Final Exam Solutions

  1. United: $480,000; Heart: $240,000; Red Cross: $160,000.
  2. (a) 28%      (b) 5%
  3. $1,000
  4. $3,050
  5. 6.67%
  6. 23.5%
  7. 5%
  8. (a) 30.25%     (b) $2,000
  9. $1,500
  10. 25%
  11. $480
  12. $800
  13. $414.38 is the sale price; the price before the 25% markdown was $552.50.
  14. $2,000
  15. 50%
  16. $75
  17. 20%
  18. £530.17 (GBP)
    1. (a) in units, 96     (b) as a percent of capacity, 64%     (c) in dollars, $61,440.
  20. C = $250 + $0.25x, where x is the number of kilometers driven, $625.
    1. (a) 100 computers     (b) $245,000     (c) $150,000     (d) 125 computers     (e) $2,600
    1. (a) CA=$200x; CB =$5,000 +$100x; CC=$12,000 +$50x, x = the number of hours     (b1) . 50 hours;      (b2) 140 hours     (c) < 50 hours use A; 50-140 hours use B; > 140 hours use C.
  23. 26 months (The final payment will be smaller.)
    1. (a) $79,973.02     (b) $43,973.02
  25. (a) $3,935.10     (b)$3,935.10× 180 – $600× 300 = $528,318
  26. (a) $779.79/month     (b)$4,000×120 − $779.79× 240 = $292,850
  27. $1,477.83
  28. $6,157.81 and $157.81 is the interest
  29. 24 months
  30. $10,377.35
  31. 5.5 years
  32. 12.0%
  33. 12.18%
  34. $877.20
  35. 6.5552%, 6.7089%, Fund two is highest.
    1. (a) $550     (b) $2,487.37
  37. $832.54
    1. (a) i/month = 1.083423742%, j4 = 13.1425%     (b) j1 = 13.8045%
  39. 5 years
  40. $51,370.97 today
  41. $50,000
  42. 14.35%
    1. (a) Financing more costly because $134,247 > $130,000     (b) Financing cheaper because $121,027 < $130,000.
    1. (a) $1,654     (b) $148,478     (c) $10,459.89
  45. j2=10.40678%
    1. (a) $45,781.31     (b) $8,170.69
  47. $10,743.42
  48. $223.68
    1. (a) 1654.356115 → $1,655/month     (b) 300 payments (299 full-sized payments and 1 smaller final payment. (n = 299.6072073)     (c) $51,140.25     (d) $16,809.59     (e) $159,560.25     (f) 1037.575056→ $1,038/month     (g) $1511.061987→ $1,512/month     (h) $1,322.06
  50. (a) $1,004.52 → $1,005/month     (b) $414.21 principal repaid, $590.79 interest     (c) $60,495.03     (d) 48.345%
    1. (a) 18.62% > MARR of 15% so yes, buy the business.     (b) $7817.58 > 0 so yes, buy the business.     (c) up to $47,817.58     (d) $55,000- $18,083 = $36,917     (e) decrease of $2,065.69/year
    1. (a) IRR= 16.83% < 20% MARR so no     (b) No, NPV=-$22,561.23, NEG.     (c) falls by $22,561 to $177,439     (d) $120,841 ($80,841 increase)     (e) $27,073.47     (f) $6,259/year

 

(source)