Q1. Purchases of an inventory item during last month were as follows:

Number of itemsUnit price

5 $5.00

10 $8.00

8 $6.00

15 $3.00

What was the weighted average price per item?

Q2. Simplify

1) 50 - 10 / 12 + 8

2) 30 + 8 [ 6^2 - 4 ( 3 - 1) ] / 4 - 6

3) 268 / 4400 * 156 / 366

4) 8600 ( 1 - 0.27 * 226 / 360 )

5) 2424 / 1 + 2 * 166 / 365

6) 2X^4 Y^-4 / 8X^7 Y^3

Q3. A salesperson receives a commission of 5% on the first $1,500.00 of sales during a week. On the next $5,000.00 she receives a commission of 10.5%. On any additional sales, the commission rate is 11.75%. Find her gross earnings for a week during which her sales amount to $12,400.00.

Q4.Barb's Home Income Tax business operates only during tax season. Last season Barb grossed $38,790 including GST. During that season she spent $9,500 before GST on her paper and supply purchases. How much does Barb owe Revenue Canada for GST?

Q5. Sean's residence is assessed by the local taxation department at $160,000. Calculate the property taxes paid on this property if the existing mill rate is 20.

Q6. When solving compound interest problems, it is acceptable to

1. use the nominal interest rate in the formula
2. Use either the nominal or periodic rate in the formula
3. Use the periodic rate in the formula
4. Use the simple interest rate in the formula

Q7. Sue invests $1,000 at 4.8% compounded semi-annually for five years. The values of i and n, respectively, in the formula ( 1 + I )^n are?

Q8. The face value of a four-month, 6% note dated August 12, 2017, is $1240. What is the due date?

Q9. A 90-day, $1,200 promissory note was issued March 31 with interest at 7%. What is the value of the note on June 29?

Q10. Morgan loaned $3,100 to Rolf at a simple interest rate of 0.65% per month. What was the term of the loan if the total interest came to $221.65?

Q11. How much will $10,000 be worth after 25 years if it earns:

a) 6% compounded semiannually?

b) 7% compounded semiannually?

c) 8% compounded semiannually?

Q12. What amount three years from now is equivalent to $3,000 due five months from now? Assume that money can earn 7.5% compounded monthly.

NOTE: Below are formulas base in our module for reference.

Also on calculating number of days for period, just type in google search the required period of days in order to determine if Feb is in leap year of not. Example: How many days from Jan 20, 2015 to May 25, 2015 = 125 days

FORMULAS FOR BUSINESS MATHEMATICS

1. Gross earning = Gross pay for work week + overtime pay

1. Property Tax = Mill rate x 0.001 x assessed value of property

Or = Mill rate x 1/1000 x assessed value of property

1. Simple Interest

Where:

I - Interest

P - Principal / Face Value / Present Value

R - rate of interest

T - Time period

S - Future value / maturity value

I = P * r * t

S= P ( 1 + rt )

P = S / ( 1 + rt )

In the case of T-Bills, purchase price = P that is a present value

To find : t = I / Pr

r = I / Pt

To change units of time:

1. In months to years (divide by 12 )
2. In days to years (divide by 365 / 366 if leap year )
3. In years to months ( multiply with 12 )

Also: P = I / rt

A = Amount = future value / total amount / maturity value

So, A = P + I

1. Compound Interest

Where : P = Principal

CI = Compound interest

J = nominal rate of interest

(expressed in per annum that is annually)

n=m = number of compounding periods

i = r = period rate of interest

Period = m/n

Daily = 365

Monthly = 12

Quarterly = 4

Semi Annually = 2

Yearly/Annually = 1

i = j / m or r = j / m

A = P ( 1 + r ) ^nt -

Compound amount - A

C. I = P [ ( 1 + r )^nt - 1 or 0 ]

FV - PV ( 1 + i )^nt

For present value // amount its same formula like in equation 1 with different variables but meaning is same.

PV = FV / (1 + I )^nt - for present value

Compound discount / Compound Interest both are the same Compound discount = FV - PV

Where :

FV = future value (amount)

PV = Present value (principal)