Math 141                                                                Practice 2

1.
Find the point of intersection of the lines whose equations are 4x + 2y = 12 and 3x + 9y = 39.
 A. (5, –4)
 B. (10, 1)
 C. (1, 4)
 D. (2, 2)

2.
Graph the constraint inequalities for a linear programming problem shown below. Which feasible region shown is correct?
 2 x + 3y ≤ 12 x ≥ 0, y ≥ 0

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.
 A. 35x + 5y ≤ 5, 20 x + 10y ≤ 4, x ≥ 0, y ≥ 0
 B. 35x + 5y ≤ 500, 20 x + 10y ≤ 200, x ≥ 0, y ≥ 0
 C. 35x + 20y ≤ 500, 5 x + 10y ≤ 200, x ≥ 0, y ≥ 0
 D. 35x + 20y ≤ \$5, 5 x + 10y ≤ \$4, x ≥ 0, y ≥ 0

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.

 A. (0, 2)
 B. (2, 4)
 C. (4, 1)
 D. (3, 0)

5.
Find an initial solution using the Northwest Corner Rule and compute its total transportation cost.
 Shop1 Shop 2 Shop 3 Bakery 1 3 1 2 5 Bakery 2 1 5 4 6 3 5 3 rim conditions

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?
 A. \$2125
 B. \$2290
 C. \$2650
 D. \$3475

7.
What is the APY for 6% compounded weekly?
 A. 6.00%
 B. 6.09%
 C. 6.18%
 D. 7.25%

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?
 A. \$1920
 B. \$2457
 C. \$2941
 D. \$3250

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?
 A. \$136,749
 B. \$101,086
 C. \$94,921
 D. \$25,356

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.
 A. -9%
 B. -11%
 C. -14%
 D. -18%

11.
A GreatCity municipal bond with face value \$100 currently trades at 107.5 points and yields 6.8%. What is the coupon rate?
 A. 6.8%
 B. 7.31%
 C. 7.5%
 D. 5.1%

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?
 A. 84 cents
 B. 85 cents
 C. 86 cents
 D. 87 cents

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?
 A. 1.66%
 B. 3.35%
 C. 4.27%
 D. 6.12%

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?
 A. –1.21%
 B. –2.09%
 C. –3.30%
 D. –4.41%

15.
This table describes the share prices of the fictional mutual funds ABC and XYZ:
 Fund Jan 1st Apr 1st ABC \$20 \$18 XYZ \$50 \$55
Suppose that you invest \$100 in ABC and \$200 in XYZ on Jan 1st. What is your
investment worth on April 1st?
 A. \$310
 B. \$300
 C. \$73
 D. \$303

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?
 A. \$95.46
 B. \$139.33
 C. \$169.53
 D. \$290.15

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.
 A. \$988.40 and \$355,824
 B. \$988.40 and \$180,000
 C. \$500 and \$180,000
 D. \$780.40 and \$280,800

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.
 A. \$780
 B. \$988.40
 C. 208.4
 D. 488.4

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?
 A. \$9,650
 B. \$15,002.5
 C. \$6,207.5
 D. other amount

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
 A. a surplus of \$270.
 B. a deficit of \$30.
 C. a deficit of \$2530.
 D. a surplus of \$2800.

1. C
2.
A
3. C
4. C
5.
 Shop1 Shop 2 Shop 3 Bakery 1 33 12 20 5 Bakery 2 10 53 43 6 3 5 3 rim conditions

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