QUESTION 1

1. A manufacturer that creates cast iron frying pans has monthly fixed costs of $21,218. If it cost the company $8.77 to make each pan and they sell each pan for $32.37 what number of frying pans will they need to sell to breakeven?

5 points

QUESTION 2

1. A company wants to have a monthly profit of $10,000. The company sells an average of 782 units per month and their monthly costs are $14,437. If the cost to produce each unit is $17.76, then what selling price will they need to sell each unit for to achieve their desired profit?

5 points

QUESTION 3

1. A manufacturer that makes guitars have a monthly capacity of manufacturing 125 guitars. If their monthly fixed costs are $12,775 and the cost of making each guitar is $286 and they sell each guitar for $889 what will be their profit if they operate at 40% capacity?

5 points

QUESTION 4

1. If you are approved for a loan at 5.1% p.a., and you borrow $9,250 how much interest will you be charged if the loan is for 20 months?

4 points

QUESTION 5

1. How much would you need to invest today to earn $10,000 in 3.25 years if the rate of interest is 5.5% p.a.?

4 points

QUESTION 6

1. What simple rate of interest p.a. is needed for $8,900 to accumulate to $9,700 in 21 months? (round your answer to 2 decimal places of a percent)

5 points

QUESTION 7

1. How many days will it take for $20000 to accumulate to $21,073.44 at a rate of 4.3%. (round according to the method discussed in the slides)

5 points

QUESTION 8

1. If you invested $45,650 on May 1st, 2018 in an account paying 5.5% p.a., what will be the value of the account on October 31st, 2020?

5 points

QUESTION 9

1. What price did Bill pay for a 91-day T-bill that had an interest rate of 7.9% p.a. and a face value of $100,000?

4 points

QUESTION 10

1. An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 daysafter the issuedateat arate of 7.1% p.a., calculate the amount of discount.