Free Printable Finance Math: Test 2 Review

1.

To break-even (no profit or loss), TOTAL COST must equal TOTAL (a) .

2.

Boom Boom Pow sells their electrolyte drink for $4.99 each. The variable cost per drink is $1.20.

The store has fixed costs of $3,400 per month and estimates their capacity is 3,000 units per month.

What is break-even in volume (units)?

a)

897 units

b)

898 units

c)

7,970 units

d)

7,971 units

3.

Boom Boom Pow sells their electrolyte drink for $4.99 each. The variable cost per drink is $1.20.

The store has fixed costs of $3,400 per month and estimates their capacity is 3,000 units per month.

What is the profit or loss if the store produces and sells 60% of their capacity?

a)

Profit of $3,422

b)

Loss of $3,422

c)

Profit of $1,372.03

d)

Profit of $1,372.03

4.

Boom Boom Pow sells their electrolyte drink for $4.99 each. The variable cost per drink is $1.20.

The store has fixed costs of $3,400 per month and estimates their capacity is 3,000 units per month.

How many drinks would they need to sell to have a profit of $8,000? Is this within the business' production capabilities?

a)

3,007 units

Absolutely! Let's do it.

b)

3,008 units

Absolutely! Let's do it.

c)

3,007 units

No way! We'll explode.

d)

3,008 units

No way! We'll explode.

5.

Select the correct formula for the scenario below.

Find the interest earned on an investment of $750 for 280 days at $6\frac{1}{2}$ % p.a.

a)

$I\ =\ 750\left(0.065\right)\left(0.77\right)$

b)

$I\ =\ 750\left(0.065\right)\left(\frac{280}{365}\right)$

c)

$I=750\left(0.062\right)\left(\frac{280}{365}\right)$

d)

$I=750\left(0.65\right)\left(\frac{280}{365}\right)$

6.

How many days are there between April 4th, 2021 and August 20th, 2023?

a)

1,233 days

b)

138 days

c)

503 days

d)

868 days

7.

How many days will it take for $600 to accumulate to $700, if interest is 7.5% p.a.?

a)

221 days

b)

222 days

c)

812 days

d)

811 days

8.

Select the correct formula for the scenario below.

An amount of $21,400 is due 26 months from now. If the interest rate on the loan is 10% p.a., what amount was borrowed?

a)

$P=\frac{21,400}{\left(1+0.1\left(\frac{26}{12}\right)\right)}$

b)

$P=\frac{21,400}{\left(1+0.1\left(2.17\right)\right)}$

c)

$S\ =\ 21,400\left(1+0.1\left(\frac{26}{12}\right)\right)$

d)

$S\ =\ 21,400\left(1+0.01\left(\frac{26}{12}\right)\right)$

9.

The "face value" of a promissory note is the value of the note at the date of maturity.

a)

TRUE

b)

FALSE

10.

The "face value" of a T-bill is the value of the bill at the date of maturity.

a)

TRUE

b)

FALSE

Finance Math: Test 2 Review_V1

Total questions: 10

Worksheet time: 16mins

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