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Math 141 Practice 2

Suppose you invest in an account that pays 6% interest, compounded quarterly. You would like your investment to grow to $8000 in 14 years. How much would you have to invest in order for this to happen?

$2125

$2290

$2650

$3475

Suppose you invest in an account that pays 6% interest, compounded continuously. You would like your investment to grow to $8000 in 14 years. How much would you have to invest in order for this to happen?

$3,454

$3,504

$3,404

$3,314

What is the APY for 6% compounded weekly?

6.00%

6.09%

6.18%

7.25%

A man cuts back on his latte habit and instead makes $20 deposits each month into a savings account earning 6% interest compounded monthly. He continues these deposits for eight years. How much will the account be worth after eight years?

$1920

$2457

$2941

$3250

John bought a house in 1947 for $19,000 and sold it in 1997. If the 1947 CPI is 22.3 and the 1997 CPI is 160.5, how much would the house be worth in 1997 dollars?

$136,323

$101,086

$94,921

$25,356

This table describes the share prices of the fictional mutual funds ABC and XYZ:

Fund	Jan 1st	Sept 1st
ABC	$43	$29
XYZ	$25	$37

Suppose that you invest $100 in ABC and $200 in XYZ on Jan 1st. What is your investment worth on Sept 1st?

$103

$363.44

$215.44

$646.33

Five years after paying $8000 for some shares of a risky stock, you sell the shares for $4500 (at a loss). Compute the annual returrn to the nearest percent.

-9%

-11%

-14%

-18%

Your friend tells you that he bought a $1000 Treasury bond with a coupon rate of 5% on which he nevertheless only gets a 4% annual return on investment. How much did he pay for the bond?

$1,000

$1,250

$1,333

$1,380

You expect to receive a payout of 15,000 from a savings account 3 years into the future. You project that there will be an annual inflation rate of 2.85% for these threee years. What is the present value of these 15,000$?

A.	$13,787.27

B.	$16,319.40

C.	$13,753.70

D.	$16,282.50

10.

In late 2001 the inflation rate was about 2.9%. If you invested in a savings account with an annual interest rate of 7.5%, what was the real growth rate of this investment?

3.24%

4.19%

4.47%

5.03%

11.

Ellie takes out a loan to purchase a car. The interest rate is 7.5% compounded monthly and Ellie has four years to repay the $12,000 she borrowed. What are Ellie's monthly payments?

$95.46

$139.33

$169.53

$290.15

12.

Suppose you are married filing separately with two dependent children, and you had a taxable income of $38,600 in 2006. Assuming you are not entitled to a tax credit for either child, how much income tax did you pay?

$9,650

$5,420

$6,207

$3125

13.

Kathrin earns $2500 after tax and her parents support her to the tune of $300 a month. She lives in San Francisco and her rent is $1200. Her other housekeeping costs are $300 (food), $350 (entertainment), 200 (clothing), 180 (transportation). She is also paying off old medical bills: $300 a month. At the end of the month, she has

A.	a surplus of $270.

B.	a deficit of $30.

C.	a deficit of $2530.

D.	a surplus of $2800.

14.

For a test , with scores close to normally distributed, the mean was 65% and the standard deviation was 11%. Sally has a score of 83/100. This places her in the top

A.	32 percentile.

B.	35 percentile.

C.	16 percentile

D.	20 percentile.

15.

Below are the lengths (in minutes) of phone calls made on an 800 line to a business on one day. Find the five-number summary for this data.

14, 6, 12, 19, 2, 35, 5, 4, 3, 7, 5, 8

A.	5, 8, 14, 15.5, 20

B.	2, 4, 7, 14, 35

C.	2, 4, 6, 12, 19

D.	2, 4.5, 6.5, 13, 35

16.

Below is a list of the number of dogs owned by families in a particular neighborhood:

4, 3, 7, 1, 5, 1, 2, 9, 0, 3

What is the standard deviation for this data?

2.8

5.6

7.3

8.1

17.

Given the histogram below for a set of data, which of the following statements is true?

A.	The five-number summary would describe the data better than the mean and standard deviation.

B.	The mean and standard deviation would describe the data better than the five-number summary.

C.	Either the mean and standard deviation or the five-number summary would be equally good to describe the data.

D.	Neither the mean and standard deviation nor the five-number summary could be used to describe the data.

18.

Given the histogram below for a set of data, which statement is true?

A.	For the set of data shown, the mean and the median are about equal.

B.	For the set of data shown, the mean is greater than the median.

C.	For the set of data shown, the median is greater than the mean.

D.	For the set of data shown, the relationship between the mean and the median cannot be determined.

Answer Key

1.	D
2.	A
3.	C
4.	B
5.	A
6.	B
7.	B
8.	B
9.	A
10.	C
11.	D
12.	C
13.	A
14.	C
15.	D
16.	A
17.	A
18.	B