Mathematics Expert Q&A

On January 15, Mario signed a contract to pay Stephan $12,000 plus 9% simple interest on May 15 and $18,000 plus 10% interest on September 12. On August 15, Stephan then sold the first contract to Sally at a rate of 11% and the other contract to Anna for 12%. Determine the amount Stephan received on August 15.

A) $33,333.33
B) $31,030.33
C) $30,130.33
D) $29,313.33
E) $26,613.33

Ace Furniture will give you 8 months, interest free, before you have to pay for a $2,000 sofa. Based on the fact that Ace pays 14% on its short term debt, what would be a reasonable amount of cash for you to offer them at the time of purchase?

A) $2,187
B) $1,829
C) $1,720
D) $1,813
E) $2,000

On May 27, Kristina made an investment that earned an interest rate of 9.4%. By November 6 the investment's value had increased to $77,000. What amount of interest had Kristina earned?

A) $3,619
B) $3,102
C) $3,232
D) $5,112
E) $7,238

Liam had $5,200 in student loans. On August 9, he began repayments of $50 per month when simple interest rates were 9.2% annually. On September 8, the interest rates rose to 9.5%. By what amount will the principal be reduced given the $50 payment on September 30?

A) $8.90
B) $9.91
C) $10.90
D) $11.90
E) $12.90

A 182-day, $250,000 Treasury Bill originally issued at 6.6% was sold at 5.9% simple interest, 82 days after it was issued. What was the selling price?

A) $245,560
B) $250,000
C) $246,730
D) $246,347
E) $246,023

How many months would it take to earn $1,650 interest on a deposit of $44,000 at 7 ½%?

A) 4.5 months
B) 12 months
C) 6 months
D) 5 months
E) ½ month

Robert placed $7,000 in a 10-month term deposit paying 6.25%. How much will the term deposit be worth when it matures?

A) $3,645.83
B) $7,991.81
C) $7,364.58
D) $6,653.46
E) $7,769.89

A mortgage loan of $100,000 at 6% compounded monthly is amortized by equal monthly payments over 25 years. What is the total amount of interest that would be paid during the first year?

A) $6,168
B) $5,000
C) $5,952
D) $5,902
E) $3,776

Today, in Brazil, there are 462,966 people in prison. The prison population there has been decreasing at a rate of 1.9% per year for the last 10 years. How many prisoners were there in Brazil 10 years ago?

A) 375,002
B) 560,866
C) 607,562
D) 558,844
E) 383,537

If a 30-year, $10,000 strip bond is issued at a yield rate of 5.75% compounded semi-annually, what is its issue price?

A) $349
B) $978
C) $993
D) $1,869
E) $1,826

Sam will contribute $200 to his RRSP at the end of each month for 15 years and then raise his monthly contribution to $500 at the end of each month for the subsequent 20 years. If his investments earn 11.7% compounded monthly, what will be the value of the investments after the last $500 contribution is made 35 years from now?

A) $1,186,877
B) $572,207
C) $1,471,930
D) $521,751
E) $285,054

What monthly compounded nominal rate of return must Rachel earn in her RRSP in order for month-end contributions of $600 to accumulate to $750,000 in 25 years?

A) 8.04%
B) 9.65%
C) 10.09%
D) 11.48%
E) 13.50%

Twenty-five years ago Sandy invested $3,000. Fifteen years ago she put another $2,000 into the investment. Over the 25 years, interest has accumulated at a rate of 6% compounded monthly. How much interest has she earned over the 25 years?

A) $18,303
B) $6,567
C) $5,134
D) $11,567
E) $13,303

How much money would have to be invested today, at 9% compounded monthly in order to have $40,000 in seven years?

A) $21,353.81
B) $23,726.43
C) $33,786.03
D) $34,928.08
E) $5,071.92

5.4% compounded monthly is a better investment than 5.18% compounded semi-annually

Amanda is considering one of two options. The first option is to receive $48,000 now. The second option is to receive $75,000 at the end of the fifth year. Determine which option should be chosen to maximize benefits now given an interest rate of 8.8% compounded annually.

A) Second option, as it provides benefit of $54,194.53 compared to $48,000 for second
B) Second option, as it provides benefit of $53,194.53 compared to $48,000 for second
C) Second option, as it provides benefit of $52,194.53 compared to $48,000 for second
D) Second option, as it provides benefit of $51,194.53 compared to $48,000 for second
E) Second option, as it provides benefit of $49,194.53 compared to $48,000 for second

Social Security benefits are need-based and are not based on your earnings over your working lifetime.

What is Medicare?

A) Unemployment insurance for workers who involuntarily lose their jobs.
B) Health benefits and compensation for workers who get injured on their jobs.
C) Benefit pay to workers who retire or become disabled,or to their survivors if the worker dies.
D) Health insurance for the disabled and for people over 65.

Roland had $10,500 in medical expenses last year and has no medical insurance.The IRS allows medical expense deductions for the amount that exceeds 7.5% of a taxpayer's adjusted gross income.If Roland's adjusted gross income is $31,000,how much can he claim as a medical deduction?

A) $10,500
B) $8,175
C) $7,500
D) $750

The costs for postage and packaging are examples of fixed expenses.