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1. At the end of the summer, Walgreens advertised blow-up pools for 66% off the regular price. Jeff Jones saw a pool with a regular price of \$49.99. What is the dollar markdown?

A. \$39.29

B. \$32.99

C. \$33.99

D. \$33.39

2. How do Federal Reserve banks, as well as the federal government, typically calculate simple interest?

A. Based on ordinary interest

B. Using 30 days in each month

C. Using 31 days in each month

D. Based on exact interest

3. A video game sells at Arnolds for \$14.99. Arnold's marks the game up at 40% of the selling price. What is the cost of the game to Arnold?

A. \$9.10

B. \$6.50

C. \$8.99

D. \$6.00

4. The percentage method aids in calculating

A. FUTA.

B. FIT.

C. FICA.

D. SUTA.

5. Bill's Furrier marks up mink coats \$3,000. This represents a 50% markup on cost. What is the cost of the coats?

A. \$6,000.

B. \$9,000.

C. \$1,500.

D. \$4,500.

6. Jane is having difficulty deciding whether to put her savings in the Mystic Bank or in the Four Rivers Bank. Mystic offers a 12% rate compounded quarterly, and Four Rivers offers 14% compounded

semiannually. Jane has \$40,000 to invest and expects to withdraw the money at the end of five years.

Using the tables in the Business Math Handbook that accompanies the course textbook, determine which one of the following is the best deal.

A. Four Rivers for first two years

B. Four Rivers

C. Mystic for last two years

D. Mystic

7. When markups are based on the selling price, the selling price is

A. cost – markup.

B. 100%.

C. the portion.

D. 100% + cost percent.

8. What is the single equivalent discount rate of the trade discount 5/4/1?

A. .09712

B. .90288

C. .00002

D. .99998

9. An Apple iPod sells for \$299, which is marked up 40% of the selling price. What is the cost of the iPod?

A. \$179.40

B. \$197.40

C. \$194.70

D. \$149.70

10. Mia Kaminsky wants to attend RiversideCommunity College. She'll need to have \$25,000 six years from today. Mia is wondering what she'll have to put in the bank today so that she'll have \$25,000 six years from now. Her bank pays 5% compounded semiannually. Using the tables in the Business Math Handbook that accompanies the course textbook, determine the amount Mia needs to deposit today.

A. \$33,622

B. \$33,226

C. \$18,950

D. \$18,590

11. The taxable earnings column of a payroll register records

A. wages, actual tax, and estimated tax.

B. the estimated tax.

C. the actual tax.

D. what wages will be taxed.

12. The effective rate of a \$25,000 non-interest-bearing simple discount 10%, 90-day note is

A. 10%.

B. 10.62%.

C. 10.26%.

D. 10.8%.

13. To date, Jay Ward has cumulative earnings of \$107,600. This week he is paid \$3,000. What is the total amount of Social Security tax for this week? Assume a rate of 6.2% on \$110,100 for Social Security and 1.45% for Medicare

A. \$180.00

B. \$186.00

C. \$57.66

D. \$155.00

To date, Jay Ward has cumulative earnings of \$107,600. This week he is paid \$3,000. What is the total amount of Social Security tax for this week? Assume a rate of 6.2% on \$110,100 for Social Security and 1.45% for Medicare. A. \$186.00 – Incorrect Answer B. \$155.00 C. \$180.00 D. \$57.66

14. Jill Ley took out a loan for \$60,000 to pay for her child's education. The loan must be repaid at the end of eight years in one payment with interest of 6%. The total amount Jill has to pay back at the end of the loan is

A. \$80,800.

B. \$88,800.

C. \$28,800.

D. \$88,008.

15. Black & Decker Manufacturing sold a set of saws to True Value Hardware. The list price was \$3,800.

Black & Decker offered a chain discount of 8/3/1. What is the net price of the saws?

A. \$3,537.21

B. \$3,357.21

C. \$3,537.12

D. \$3,391.12

16. A local Dot Dress Shop is selling a suit for \$99. Because of changing styles, the first markdown was

8% and second markdown was 25%. The suit still did not sell, so a final markdown of 10% was taken.

What is the current sale price?

A. \$68.31

B. \$61.84

C. \$61.48

D. \$86.31

17. (1 + markup percent on cost) × cost equals the

A. cost at retail.

B. selling price.

C. cost at wholesale.

D. markup.

18. An invoice dated March 6 with terms of 1/10, EOM results in the end of the discount period on

A. May 30.

B. April 10.

C. April 30.

D. May 31.

19. Jim Smith is a salesman who receives a \$1,100 draw per week. He receives a 12% commission on all sales. Sales for Jim were \$205,000 for the month. Assuming a four-week month, Jim's commission after the draw is

A. \$26,400.

B. \$20,200.

C. \$23,500.

D. \$24,600.

20. A local college bookstore paid a net price of \$12,500 for textbooks for the coming semester. The publisher offered a trade discount of 20%. The publisher's original list price was

A. \$2,500.

B. \$15,625.

C. \$15,500.

D. \$15,000.

21. What is the effective rate of a \$30,000 non-interest-bearing simple discount 5%, 60-day note?

A. 6.0%

B. 5.04%

C. 5%

D. 5.14%

22. Differential pay schedule is based on

A. gross pay.

B. FICA.

C. FUTA.

D. different levels of performance.

23. Jasper works at Panera Company for \$11.25 per hour plus a commission of 2% of her sales. Assuming Jasper worked 26 hours last week and had sales of \$2,610, what is her gross pay?

A. \$351.20

B. \$344.70

C. \$342.00

D. \$290.50

24. JanetHome went to Citizen Bank. She borrowed \$7,000 at a rate of 8%. The date of the loan was

September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?

A. \$187.18

B. \$187.17

C. \$188.22

D. \$189.78 A

25. Johnny Mac's Sporting Goods bought a baseball glove from Rawlings Sporting Goods for \$66.00. They want to mark up the glove 70% on selling price. What should Johnny's sell the glove for?

A. \$113.22

B. \$246.42

C. \$220.00

D. \$179.82

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