Tiphaine Mouanga
Business Mathematics I –Final Exam
1) Calculate the amount of interest for the following loan. Principal: $46,550; Compounded at a Nominal/Annual Rate of 5.2%; Period runs from 23 October 2017 to 17 November 2017.
4 marks
I = PRT
P=$46,550; R=5.2% ; T =25day
Oct 31
Nov 30
31 -23=8
0ct 8 +17 for Nov=25 days
$46,550 x 0.052 x (25/365)
I = 165,794
2) Calculate the amount of interest for the following. Principal: $2700; Compounded quarterly at 1.75% for nine months.
4 marks
A = P(1 + i)N,
A = 2700 ; I = 1.75
A = 2700(1 + 0.0175/4)
3) BeanCo buys some new manufacturing equipment from Rooster Machinery for a pre-tax total of $27,000. Rooster gives BeanCo a chain discount of 20/15/8. Calculate the post-discount total price of the equipment.
5 marks
What price would BeanCo pay with a straight 43% discount?
4 marks
4) The Rift clothing chain location at the Babylon Mall sells discount, mid-range, and designer-label clothing, so their products come from a variety of wholesalers. Rift buys Generic Inc. fleece jackets for their discount sections for $14/unit wholesale, then marks them up by $7. Rift buys Kanyashian designer fleece jackets for $49/unit wholesale, marking them up by $54.
A. Calculate the sale prices of Generic Inc. and Kanyashian jackets.
4 marks
B. Calculate the markup percentages of Generic Inc. and Kanyashian jackets.
4 marks
C. Give one reason why the two markup percentages are different.
4 marks
Begin Writing Here.
5) Sonia takes out a loan for her small business of $36,000, which she must pay back to her bank in two years. The loan has an interest rate of 11.5%, compounded quarterly, or every three months.
A. If Sonia pays nothing on the loan until the end of its two year period, how much will she have to repay?
4 marks
B. Sonia is able to pay $4,000 every three months to reduce her loan amount before the due date. Calculate and fill out the values on the following table to show how much will be left of her loan when the full amount is due at four quarters.
16 marks
6) Husband and wife Prabhdeep & Jasreet Bhatia have bought a two-level townhome condo in midtown Toronto for $640,000. They were able to assemble a down payment worth 22% of the purch
ase price. They began paying their 30-year fixed-rate mortgage in April 2017, which has an interest rate of 8% annually. They make monthly mortgage payments of $4200.
A. How much was the Bhatias’ down payment? _______________________
2 marks
B. How much is their remaining mortgage? ___________________________
2 marks
Fill out this amortization schedule for Prabhdeep & Jasreet’s first three months of mortgage payments.
8 marks
Payment
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Current Principal
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Interest ($)
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Principal Reduction
|
Balance of Principal after Payment
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April 2017
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May 2017
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June 2017
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7) Udit is a car salesperson. He earns a $40,000/year salary, as well as earning a variable commission on his sales, given at the end of each month, according to the scale below.
Up to $60,000: 3% $60,001-$160,000: 5% More than $160,000: 8.5%
A. How much does Udit earn in commission if he sells $200,450 worth of cars in a single month?
6 marks
B. What is Udit’s gross pay (commissions + salary before taxes and other deductions) that month?
4 marks
8) The sale price for Ashley’s new condo is $450,000. But she could assemble only 15% of the overall price for her down payment; she needed to take out private mortgage insurance to ensure the deal.
A. Ashley's monthly private mortgage insurance payment is 1.1% of the condo price. How much does she pay for this each month?
3 marks
B. How much is Ashley’s down payment? How much of her condo’s sale price remains to pay off through a mortgage?
4 marks
C. Ashley's monthly mortgage payment is $3,876. Maintenance fees for her condo are a flat monthly fee of $95. What is the monthly payment for Ashley’s condo including PMI?
4 marks
D. The annual interest rate on Ashley’s mortgage is 12%. What percentage of Ashley’s first mortgage payment is interest alone?
6 marks
9) Jésus Garcia’s Relics and Charms is a small business in the Oakwood area of Toronto. Fill in the checkbook balance sheet below based on the following information.
Remember that the Reconciled Balance of both the company checkbook and bank account must equal each other.
12 marks
AAA-1 Plumbing just left store owner Mr. Garcia a bill for
$300, which Jésus just put on his “To Pay” pile in his administrative office. He surveys his store’s finances.
• That morning, a check arrived from a consulting client for
$250, which had earned
5% interest.
• He just had to write a check to a delivery service for
$75, and grumbled about their outrageous “service charge” of
$27, but is paying it anyway. He’s sure this will be the last time he works with those con men.
• Jésus’ bankers are quite happy with him, though. The store just closed on five significant purchases from antiques collectors, so after this coming weekend, the bank account should have received five separate direct deposits from all these people ($1,050.50, $673, $420, $600, and $360).
Write the correct amounts in the form below by putting your cursor in the space between the two blank lines for each item (X: ___|___). Write your answers in
bold.
JGRC checkbook balance: $7,850 JGRC bank balance: $5,207
Add: Add:
Notes Collected: ______ ____ Deposits in Transit: _____ ____
Interest Earned: ______ _____ ______ ____
Total Added: _________ _______ _____ _____
_____ _____
Deduct: _____ ____
Service Charges: ______ ______ Total Added: ______ _______
Delivery Fees: ________ ______ Deduct:
Total Deducted: ________ ______ Bathroom repair: ____ _____
Reconciled balance: ______ ______ Total Deducted: _______ ______
Reconcile