Chapter 3
James and Terry open a savings account that has a 2.75% annual interest rate, compounded monthly. They deposit $500 into the account each month. How much will be in the account after 20 years?
$159,744.59
What is the MPR if the APR is 15%?
1.25%
What two types of insurance are required in the state of Ohio?
Property Damage and Bodily Injury
Penny gets paid $.50/kit for the first 100 craft kits that she assembles. She earns $.75/kit for each craft kit she assembles over 100. This week she assembled 135 kits. How much did she earn?
$76.25
Gretchen is refinishing her gazebo that is in the shape of a regular octagon. The length of one side is 3 feet and the apothem is 3.5 feet. What is the area that Gretchen will be refinishing?
42 square feet
Margarite wants to take a trip to Japan in 8 years. She knows that she will need about $4,200. How much should she deposit right now into an account that pays 3.5% interest, compounded daily, in order to meet her goal?
$3,174.33
Mantago wants to borrow $10,000 to buy a new car. He examined his budget and decides that he can afford a payment of $200/month. If his bank offers him a loan with an APR of 7.5%, how long should he borrow the money to afford his monthly payment?
5 years
Luna has $20,000 property damage insurance and $5,000 collision insurance with a $500 deductible. One evening she slides on a patch of ice and hits a parked car, causing $4,500 worth of damage. The accident also causes $1,750 worth of damage to his car. How much will the insurance company pay to fix both cars?
In 2005, Lee began working as a nurse anesthetist with a taxable income of $119,000. The Medicare tax rate was 1.45% and the Social Security tax rate was 6.2%, to the maximum of $90,000, that year. How much did Lee pay in Social Security and Medicare taxes in 2005?
$7,305.50
The McQuires pay a monthly mortgage payment of $938. They also pay a semi-annual property tax bill of $3,298 and a semi-annual homeowner’s insurance of $840. The property tax and insurance are paid monthly into an escrow account to their lender. What is their monthly payment to their lender?
$1,627.67
Bob and Kathy want to save a total of $500,000 for retirement. How much should they deposit monthly into an account that pays 3.9% interest, compounded monthly, to meet their goal in 24 years?
$1,051.17
Jackson and Kate Jones do not pay their credit card in full each month, so they incur finance charges. On their last credit card statement, the average daily balance was $875, and the monthly periodic rate is 2.25%. What will the finance charge be on their statement?
$19.69
Craig is an Accident Reconstructionist. He arrives at an accident where there are 4 skid marks of different lengths. He finds their measures to be 85 ft, 92 ft, 88 ft, and 90 ft. It is an asphalt road with a drag factor of 0.8. It is determined that the driver’s brakes had a braking efficiency of 80%. What is the minimum speed the driver could have been going rounded to the nearest tenth?
41.3 mph
Max got a new job through the Valley Employment Service. The job pays 51K per year, and the agency fee is equal to one month’s pay. How much must Max pay the agency?
$4,250
Three years ago, Jerry purchased a condo. This year his monthly maintenance fee is $1,397. Twenty percent of this fee is for Jerry's property taxes. How much will Jerry pay this year in property taxes?
$3,352.80
Tamika opened a money market account that has a 4.25% annual interest rate, compounded annually. She deposits $1,750 into the account each year. How much interest will the account earn after 15 years?
$9,449.40
Shania bought a $1,455 drum set on the installment plan. The installment agreement included a 35% down payment and 18 monthly payments of $92.78 each. How much is the down payment?
$509.25
Mrs. Beluga is driving on a snow-covered road with a drag factor of 0.2. She brakes suddenly for a deer, which cause her tires to leave a yaw mark with a 52-foot chord and a middle ordinate of 6 feet. What is the minimum speed she could have been going?
13.3 mph
Lynn regularly works a 40-hour week and earns $9 per hour. She receives time-and-a-half pay for each hour of overtime she works. Last week she worked 43 hours.
What was her regular gross pay?
$360
Zane received a quote to move his belongings to his new house. The estimate from the mover is $675 for 6 hours of packing and 5 hours of moving. Zane thinks he can reduce his cost by doing some of the packing and moving himself. If he does, the cost will decrease to $425 for 4 hours of packing and 3 hours of moving. If the mover charges a set hourly rate for packing and another set hourly rate for moving, what are these hourly rates?
packing: $50/hr
moving: $75/hr
Kristin deposited $9,000 in an account that has an annual interest rate of 4.1% compounded monthly. How much interest will she earn in 18 months?
$569.87
Dr. Drake is thinking about retirement, and decides to sail around the world once he retires. He buys a sailboat for $125,000. He takes out a loan with an APR of 7.5% for five years. What will his total interest be on his loan?
$25,284.40
Gina has 250/500/50 liability insurance and $50,000 PIP insurance. She changes lanes too quickly, hits the metal guard rail, and then hits a tour bus. Four people are seriously hurt and sue her. Twenty others have minor injuries. Gina’s boyfriend, who was in her car, was also hurt.
The guard rail will cost $2,000 to replace. Gina also did $9,700 worth of damage to the bus. What insurance will cover these damages, and how much will the company pay?
PD and $11,700
Dawn is verifying the accuracy of her paycheck. She earns $12/hour and works 40 hours each week. Her biweekly deductions are Social Security tax of 6.2%, Medicare tax of 1.45%, federal withholding tax of $73.25, state withholding tax of $22.50, and health insurance of $37.47. What is her net pay if she is paid biweekly?
$7,305.50
Natalie just rented an apartment for $900/month. She was told that rent will increase by 5.5% each year. Approximately how much will her rent be in 7 years? Round to the nearest dollar
$1241