Review Class: (Key Name: Date: ID: A Midterm Review Chapters 1 to 4 hi Multiple Choice Identify the choice that best completes the statement or answers the question 1. Determine the future value of a simple interest investment with a 6-year term on a principal of $150 at 2.8%. A. $180.50 A= P+Prt =150+150 (0.001) (6) B. $175.20 C. $402.00 D. $154.30 2. Determine the future value of a simple interest investment where 3% interest paid quarterly for 3 years on $700. $763.00 $728.00 C. $742.00 D. $805.00 A = P+Prt =700+700(0.03) (3) 3. Patrick invested $4000 for 9 years. At the investment's maturity, its value was $5476. What was the annual simple interest rate? A. 3.8% B. 4.1% C. 6.2% D. 5.3% A= P + Prt 54764000+400 (1) (9) 0041 ol I=Prt (5476-40=4000(r) (9) 4. Rosa invested $600 at 3.9% simple interest. At the investment's maturity, its value was $1302. How long was the money invested? A. 25 years (B) 30 years C. 35 years D. 40 years 1302=600+600(0.039x4) t=1302-600 Name: ID: A 5. Jacob has $30 000 to invest for 5 years. Which investment option will earn him more interest? How much more interest? A. 6.2% simple interest, paid monthly B. 4.2% compound interest, paid annually A. Option B: $488.30 B Option A: $2448.10 C. Option B: $230.10 D. Option A: $2303.23 I=prt = 30000(0.062) (5)=9300 A=P (1+)=30000(1+0.042) = 30151.90 -30400 685150 9300-6851.90 6. How many compounding periods are there for $1000 invested for 6 years at 4.2% compounded semi-annually? A. 6 B12 C. 42 D. 6000 6x2 7. Determine the future value and the total interest earned for the investment. Principal (P) (S) 35.000 Compound Interest Rate per Annum (%) 3.7 A. $45 239.99; 10 239.99 Β. $46 245.18; $11 245.18 C. $45 293.23; $10 293.23 D. $44 669.12; $9669.12 Compounding Frequency quarterly A=P(1+) 0.037 35000(1+4 8. Use the Rule of 72 to estimate the investment's doubling time. Principal (P) (S) 700 A. 200 years B. 2 years C 42 years D. 412 years Compound Interest Rate per Annum (%) 1.7 72 1.72 Compounding Frequency weekly Term 7 years Term 3.5 years Name: 39. Evaluate. C 6! ID: A A 15 B. 18 C. 30 D. 36 21.41 40. Suppose that 10 teachers and 8 students volunteered to be on an environmental action committee. The committee must consist of 2 teachers and 2 students. How many different environmental action committees does the principal have to choose from? A. 45 B. 73 82 C1260 10 D. 5040 28 216. 41. Identify the term that best describes the following situation: Determine the number of codes for a lock with three dials numbered 0 to 9. A. permutations B. combinations C. factorial none of the above 42. How many ways can the 6 starting positions on a hockey team (1 goalie, 2 defense, 3 forwards) be filled from a team of 2 goalies, 5 defense, and 10 forwards? A. 1200 B2400 C. 4800 D. 9600 19 5 1111 2:3 32 =2×10×120 43. Euchre is played with a deck of 24 cards that is similar to a standard deck of 82 playing cards, but with only the ace, 9, 10, jack, queen, and king for all four suits. How many different five-card hands are there with at least three clubs? A. 375 Hards with 3 clubs: 32 61 3131 2160 3060 B. 926 3336 D. 10 626 + 4 chute Cu = 121 817 4125 - 270 Schusss fo = 6 add 3336

Economics Midterm Review Key

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