1. 
Find the point of intersection of the lines whose equations are 4x + 2y = 12 and 3x + 9y = 39.

2. 
Graph the constraint inequalities for a linear programming problem shown below. Which feasible region shown is correct?

3. 
Write the constraint inequalities for this situation: Kim and Lynn produce pottery vases and bowls. A vase requires 35 oz. of clay and 5 oz. of glaze. A bowl requires 20 oz. of clay and 10 oz. of glaze. There are 500 oz. of clay available and 200 oz. of glaze available. The profit on one vase is $5 and the profit on one bowl is $4.

4. 
The graph of the feasible region for a mixture problem is shown below. Find the point that maximizes the profit function P = 2x + y.

5. 
Find an initial solution using the Northwest Corner Rule and compute its total transportation cost.

6. 
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?

7. 
What is the APY for 6% compounded weekly?

8. 
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?

9. 
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?

10. 
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.

11. 
A GreatCity municipal bond with face value $100 currently trades at 107.5 points and yields 6.8%. What is the coupon rate?

12. 
The average annual inflation rate over the next 5 years is projected to be about 3.4%. What is the present value of $1 in 5 years?

13. 
In early 2002 the inflation rate was about 1.4%. If you invested in a savings account with an annual interest rate of 4.8%, what was the real growth rate of this investment?

14. 
Pat invested in her employer's stock program in 1981. The annual yield for her investment was 6.5%, but the inflation rate was 7.8%. What was the real growth rate of this investment?

15. 
This table describes the share prices of the fictional mutual funds ABC and XYZ:
Suppose that you invest $100 in ABC and $200 in XYZ on Jan 1st. What is your
investment worth on April 1st?

16. 
Ellie takes out a conventional 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?

17. 
You take out a 30 year fixed rate mortgage of $180,000 at an APR of 5.2%. Find the monthly payment and the total payment.

18. 
You take out a 30 year fixed rate mortgage of $180,000 at an APR of 5.2%. Find the interest portion of mortgage payment in the first month.

19. 
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?

20. 
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

Answer Key
1.  C  
2. 
A
 
3.  C  
4.  C  
5. 
Transportation Cost: 3*3+2*1+3*5+3*4 = 38  
6.  D  
7.  C  
8.  B  
9.  A  
10.  B  
11.  B  
12.  B  
13.  B  
14.  A  
15.  A  
16.  D  
17.  A  
18.  A  
19.  C  
20.  A 