BUSINESS MATH FINAL REVIEW EXAM
QUESTIONS WITH CORRECT ANSWERS
Maggie's charge account statement shows an unpaid balance of $1,200. The monthly
finance charge is 3.15 percent of the unpaid balance. What is the finance charge? -
ANSWER-$37.80
Johnny received his monthly credit card statement. The previous balance was
$1,826.83. He made a payment of $650.00 and had credits of $125.57 and $62.00. He
had a finance charge of 2% of his unpaid balance and new purchases totaling $197.51.
What is his new balance? - ANSWER-$1206.56
Merilyn wants to buy a new convertible. The base price is $35,000. Options she wants
included are leather seats for $1,500 and a bike rack for $500. There is no destination
charge, but her state sales tax is 6 percent of the purchase price. What is the total price
she will pay for the new vehicle? - ANSWER-$39,220
Jessica obtained a loan of $15,500.00 to purchase a new car. The annual percentage
rate is 12 percent. She must repay the loan in 48 months. What is her monthly
payment? - ANSWER-$410.28
Barbara wants to purchase a $32,000 vehicle by making a downpayment of 10% and
financing the rest with an installment loan. How much is she financing? - ANSWER-
$28,800
Par Value - ANSWER-bond selling at its face value
Stock Exchange - ANSWER-place where stocks are bought and sold
Quoted Price - ANSWER-current selling price of a bond listed as a percent
Premium - ANSWER-bond selling at more than its face value
Discount - ANSWER-bond selling for less than its face value
Stockbroker - ANSWER-licensed person who does the buying and selling of stock
Stock Certificate - ANSWER-piece of paper showing the number of shares of stock
owned
Certificate of Deposit - ANSWER-short-term investment where he depositor agrees to
invest his money for a specified length of time
, Face Value - ANSWER-the value printed on the bond
Dividends - ANSWER-a portion of the profits of a corporation
Payee - ANSWER-Person being paid
Payer - ANSWER-Person issuing payment
EFT - ANSWER-Electronic Funds Transfer
Check - ANSWER-An order to a bank to pay a specific amount of money to someone
And - ANSWER-Period
Credits - ANSWER-Received
Debits - ANSWER-Money going out
Void - ANSWER-Ignore
Deposit Slip - ANSWER-A personally filled out document of deposits
Endorse - ANSWER-Signing check
ATM - ANSWER-Automated teller machine
PIN# - ANSWER-Personal identification#
Promissory note (or note) - ANSWER-A legal binding document
Add-On Loan - ANSWER-a simple interest loan paid off in installments
Amortized Loan - ANSWER-The payment
Discount Loan - ANSWER-Bank subtracts interest from the amount of the loan.
Premium - ANSWER-a fee paid for protection against loss
Principal - ANSWER-The amount of deposit or borrowed money
Reconciling - ANSWER-Making checkbook register and bank balance the same (or
close to it)
Periodic Rate - ANSWER-The APR expressed over a shorter period of time
QUESTIONS WITH CORRECT ANSWERS
Maggie's charge account statement shows an unpaid balance of $1,200. The monthly
finance charge is 3.15 percent of the unpaid balance. What is the finance charge? -
ANSWER-$37.80
Johnny received his monthly credit card statement. The previous balance was
$1,826.83. He made a payment of $650.00 and had credits of $125.57 and $62.00. He
had a finance charge of 2% of his unpaid balance and new purchases totaling $197.51.
What is his new balance? - ANSWER-$1206.56
Merilyn wants to buy a new convertible. The base price is $35,000. Options she wants
included are leather seats for $1,500 and a bike rack for $500. There is no destination
charge, but her state sales tax is 6 percent of the purchase price. What is the total price
she will pay for the new vehicle? - ANSWER-$39,220
Jessica obtained a loan of $15,500.00 to purchase a new car. The annual percentage
rate is 12 percent. She must repay the loan in 48 months. What is her monthly
payment? - ANSWER-$410.28
Barbara wants to purchase a $32,000 vehicle by making a downpayment of 10% and
financing the rest with an installment loan. How much is she financing? - ANSWER-
$28,800
Par Value - ANSWER-bond selling at its face value
Stock Exchange - ANSWER-place where stocks are bought and sold
Quoted Price - ANSWER-current selling price of a bond listed as a percent
Premium - ANSWER-bond selling at more than its face value
Discount - ANSWER-bond selling for less than its face value
Stockbroker - ANSWER-licensed person who does the buying and selling of stock
Stock Certificate - ANSWER-piece of paper showing the number of shares of stock
owned
Certificate of Deposit - ANSWER-short-term investment where he depositor agrees to
invest his money for a specified length of time
, Face Value - ANSWER-the value printed on the bond
Dividends - ANSWER-a portion of the profits of a corporation
Payee - ANSWER-Person being paid
Payer - ANSWER-Person issuing payment
EFT - ANSWER-Electronic Funds Transfer
Check - ANSWER-An order to a bank to pay a specific amount of money to someone
And - ANSWER-Period
Credits - ANSWER-Received
Debits - ANSWER-Money going out
Void - ANSWER-Ignore
Deposit Slip - ANSWER-A personally filled out document of deposits
Endorse - ANSWER-Signing check
ATM - ANSWER-Automated teller machine
PIN# - ANSWER-Personal identification#
Promissory note (or note) - ANSWER-A legal binding document
Add-On Loan - ANSWER-a simple interest loan paid off in installments
Amortized Loan - ANSWER-The payment
Discount Loan - ANSWER-Bank subtracts interest from the amount of the loan.
Premium - ANSWER-a fee paid for protection against loss
Principal - ANSWER-The amount of deposit or borrowed money
Reconciling - ANSWER-Making checkbook register and bank balance the same (or
close to it)
Periodic Rate - ANSWER-The APR expressed over a shorter period of time
