Introduction to Financial Math

During the winter quarter, the student dining services sells an average of 325 portions of hot chocolate per day. The hot chocolate mix comes in containers of 130 oz. each. A serving requires 4 oz. of mix. How many containers are used on an average day?

• 6 1/4

• 2 1/2

• 10

• 20

Approximate sales are $35,000; approximate cost of goods sold are $6,500; warranty expenses are approximately $3,500; salaries are exactly $15,125; and taxes paid are exactly $1,124. What is the profit?

• approximately $15,250

• approximately $8,750

• exactly $15,250

• exactly $8,750

To prove that multiplication is right you would:

• divide the quotient by one of the multipliers

• multiply the product by one of the multipliers

• divide the product by one of the multipliers

• multiply the quotient by on of the multipliers

What is the inverse operation of division?

• conversion

• multiplication

• subtraction

• addition

One-third of two thousand five hundred seventy is approximately:

• 750

• 860

• 800

• 900

Area is measured in:

• square units

• meters

• inches

• miles

A promissory note is:

• your written promise to pay back a loan

• an invoice

• like a check

• a gift

Andrew bought a car for $2,500 cash. He expects annual cost to operate the car to be $650 every six months for insurance and $200 per month for upkeep and maintenance. He will get 25 miles per gallon and drive 1,000 miles each month. Gas is $4/gal. What should his total operating expenses be for the first year?

• $4,970

• $4,320

• $1,920

• $5,620

Angela is getting married in a year. She wants to buy her dress with monthly payments of $150 per month for a year. If the total of the finance charges is $400, what is the price of the dress?

• $2,200

• $1,650

• $1,400

• $1,800

Joann purchased a used automobile for $1,500. Southwest Banks finances the car for one year at 12.5%. Compute the total payment at the end of the year.

• $1,587.50

• $1,687.50

• $187.50

• $1,887.50