Choose the correct option

11. Jason Horton works for Chevron as a welder on offshore drilling rigs. His retirement plan contributions are $3800 at the beginning of each 6-month period. Assume that the account grows at 6% compounded semiannually for 15 years. Find the (a) future value of the annuity and (b) the interest earned.*

$52,547.60; $9,447.60

$9,947.60; $55,547.60

$55,547.60; $9,947.60

Other:

12. An engineer signs a contract to work in Hong Kong for 5 years. The contract specifies that at the end of his 5 years of service, he will receive $90,000 at the end of each of the following 3 years. Assume funds earn 6% compounded annually. (a) Find the amount needed at the end of his 5 years of service to fund the payments. (b) Find the end-of-year payment into a sinking fund needed to accumulate this amount.*

$240,570.90; $42,677.28

$250,570.90; $45,677.28

$42,677.28; $240,570.90

Other:

13. Face Value $816, Discount Rate 7.5%, Time (Days) 232, Discount _____________ , Proceeds _____________*

2 points

$89.44; $796.56

$776.56; $39.44

$39.44; $776.56

Other:

14. A local oil-distribution company made the following purchases of gasoline tanks during the year: 18 at $420 each, 28 at $245 each, 37 at $245 each, and 20 at $180 each. The current inventory shows that there are 55 tanks. Find the value of the inventory using (a) the FIFO method and (b) the LIFO method.*

$12,175; $16,625

$16,625; $12,175

$12,625; $16,175

Other:

15. Inventory at a local pharmacy was taken five times and was found to be $64,000; $55,480; $66,000; $58,420; and $63,421. Sales during the same period were $260,456. Find the stock turnover at the pharmacy. Round to the nearest cent.*

3.24

2.44

4.24

Other:

16. Barbara Waters signed a simple discount note for $150,000 for 150 days at a rate of 8%.Find (a) the proceeds and (b) the effective interest rate based on the proceeds received by Waters.*

$5,000; 8.28%

$145,000; 8.28%

$500,000; 8.28%

Other:

17. A 100-day simple discount promissory note for $19,400 with a simple discount of 11% was signed on January 28. It was discounted on March 5 at 8%. Find the proceeds at the time of the sale.*

$14,129

$12,419

$19,124

Other:

18. Amount of Each Deposit $2,000, Deposited Quarterly, Rate 6%, Time (Years) 5, Amount of Annuity ________, Interest Earned __________*

$49,247.34; $9,247.34

$46,247.34; $6,247.34

$46,847.34; $6,847.34

Other:

19. Markup based on Cost= 27.5%, Markup based on Selling Price=______________*

21.57%

37.93%

127.5%

Other: