College Math Unit 4 - Finances

Elena spends $4 per day on a coffee at the neighborhood cafe and $360 per month on food. On an annual basis, the first set of expenses is ___% of the second set of expenses.

• 12%

• 28%

• 34%

• 47%

Ashton maintains an average balance of $1200 on his credit card which carries an annual interest rate of 21%. Find the monthly interest payments. Assume that monthly interest rates are 1/12 of annual interest rates.

• $210

• $21

• $2520

• $252

Linda enrolls for 10 credit-hours for each of two semesters at a cost of $550 per credit-hour (tuition and fees). In addition, textbooks cost $350 per semester. Prorate the given expenses to find the monthly cost. Round your answer to the nearest dollar.

• $975

• $1463

• $150

• $488

Find the net monthly cash flow. Assume that 1 month = 4 weeks and that 1 year = 12 months. Round your answer to the nearest dollar.

• -$150

• -$907

• -$495

• -$540

A couple in their forties with a combined household income of $56,000 per year spends $400 per month on health care. Is this spending pattern at, above, or below the national average? Use the bar graph above.

• At average

• Above average

• Below average

You have a choice between going to an in-state college where you would pay $6000 per year for tuition and an out-of-state college where tuition is $9000 per year. The cost of living is higher at the in-state college, where you can expect to pay $950 per month in rent, compared to $500 per month at the other college. You will pay $1900 per year to travel back and forth from the out-of-state college. Find the cost of each college for one year.

• In-state $17,400; out-of-state $15,000

• In-state $17,700; out-of-state $15,000

• In-state $17,400; out-of-state $16,900

• In-state $17,700; out-of-state $16,900

Use the compound interest formula for compounding more than once a year to determine the accumulated balance on a $5500 deposit at an APR of 4% with a monthly compounding for 6 years.

• $6,902.61

• $6989.08

• $5591.26

• $5610.92

What is the accumulated balance if you deposit $44,956 in an account with an APR of 3.6% compounded continuously for 10 years?

• $64,436.76

• $64,030.25

• $64,333.07

• $62,790.94

You want to have $100,000 college fund in 20 years. How much will you have to deposit now in an account with an APR of 5% and daily compounding?

• $38,940.29

• $36,794.39

• $35,950.49

• $36,790.46

Find the savings plan balance after 17 months with an APR of 2% and monthly payments of $551.

• $5656.71

• $8069.00

• $6654.95

• $9492.94