Chapter 12 practice test

How much interest is earned on a 6500, 3% 1 year monthly CD that is compounded monthly?

• 6500

• 1.03

• 197.70

• 6697.70

Answer explanation

Table 3%,1yr,monthly=1.030416

6500*1.030416=6697.70

6697.70-6500=197.70

How much interest is earned on a CD of 10,000, 3.75%, 4years daily?

• 10000

• 1618.25

• 382.10

• 1.161825

Answer explanation

Table 4yr,daily,3.75=1.161825

10000*1.161825=11,618.25

11,618.25-10000=1618.25

What is the yield on a 8500 CD at 3.5%, 1 year monthly?

• 8802.32

• 3.557 %

• 302.32

• 3.427 %

Answer explanation

Table 3.5%, 1yr monthly=1.035567

8500*1.035567=8802.32

8802.32-8500=302.32

302.32/8500=3.557%

What is the yield on a loan of 4500, 1 yr quarterly of 5.25%

• 4740.94

• 5.25%

• 240.94

• 5.354%

Answer explanation

table=5.35%,1yr, quarterly=1.053543

4500*1.053543=4740.94

4740.94-4500=240.94

240.94/4500=5.354%

John buys 1000 Shares of Forestry Inc for 59.14 a share, he pays $7 commission. What is the total cost of the trade?

• 59,140

• 59.14

• 59,147

• 1000

Answer explanation

1000*59.14=59,140

59,140+7=59147

Tags

CCSS.7.EE.B.3

Nicholas Renton purchased 2,000 shares of stock at $7.25 per share. The broker’s com-

mission was $19.95 for fewer than 1,000 shares, or $0.02 per share for 1,000 or more

shares. What was the total paid?

• 14500

• 39.95

• 14539.95

• 14559.95

Answer explanation

2000*7.25=14500 stock price

19.95+(2000-1000).02=39.95 comission

14500+39.95=14539.95

Sara sold 150 shares of stock at 26.42 a share, she paid 39.95 for the commission. She paid 6787 for the stock. What was the net sale and was it a profit or loss?

• 2863.95 profit

• 2863.95 loss

• 3923.05 profit

• 3923.05 loss

Answer explanation

(26.42*150)-39.95=3923.05

3923.05-6787=-2863.95 loss

Tags

CCSS.7.EE.B.3

Jeff paid 5800 for a stock. He sold the 200 shares for 39.01 a share. He paid 45.50 commission on the sale. What was the net sale? Was it a profit or loss?

• 7756.50 profit

• 7756.50 loss

• 1956.50 loss

• 1956.50 profit

Answer explanation

(39.01*200)-45.50=7756.50

7756.50-5800=1956.50 profit

Tags

CCSS.7.EE.B.3

Calculate the dividend on a stock that pays .60 a share and costs 38.

• 1.58%

• 1.56%

• 22.8

• 21.8

Answer explanation

.60/38.00=1.58% APY

Rose Wallace owns 200 shares of stock. The stock ranged from a low of $44.45 to a high

of $54.54 last year. The annual dividend is $2.31 per share.What is the total annual dividend based on the low price?

• 4.24%

• 5.20%

• 462

• 452

Answer explanation

Low=2.31/44.45=5.20%