Mathematics with Business Applications

Chapter 5:

Practice Test


1.	Rosa Izquierdo has checks for $50.00 and $35.00. She also has two 20-dollar bills. She would like to receive $25.00 in cash and deposit the rest of the money in her savings account. What is the total deposit?
		A)	$80.00
		B)	$85.00
		C)	$100.00
		D)	$125.00


2.	Which of the following is the correct way to write the amount $56.67?
		A)	fifty-six and sixty-seven
		B)	fifty-six and 67/100 dollars
		C)	fifty-six and sixty-seven cents
		D)	fifty-six dollars and 67/100 cents


3.	Your savings account shows a previous balance of $978.65. You received $8.04 in interest. You made deposits of $75.00, $132.45, and $67.90. You had withdrawals of $50.00 and $30.00. What is your new balance?
		A)	$615.26
		B)	$1,174.00
		C)	$1,182.04
		D)	$1,342.04


4.	Francois DuFresne deposits $350.00 in a savings account. The account pays an annual interest rate of 4 percent. He makes no other deposits or withdrawals. After 3 months, the interest is calculated. How much simple interest did his money earn?
		A)	$3.50
		B)	$14.00
		C)	$353.50
		D)	$364.00


5.	Angel Garcia deposited $1,000 in a savings account which earns 5 percent interest compounded quarterly. He made no deposits or withdrawals. What is the amount in the account at the end of the second quarter?
		A)	$1,012.50
		B)	$1,025.00
		C)	$1,025.16
		D)	$1,050.00


6.	First Savings pays 6 percent interest compounded quarterly on regular savings accounts. Angela Polacco deposited $1,200 for 2 years. She made no other deposits or withdrawals.According to the table below, how much interest did Polacco earn during the 2 years?
		A)	$1,351.79
		B)	$1,272.00
		C)	$351.79
		D)	$151.79


7.	Suppose you deposit $5,000 in an account that pays 5.5 percent interest compounded daily. According to the table below, how much interest will you earn in 25 days? Chapter 5 Savings Accounts 7
		A)	$275.00
		B)	$23.36
		C)	$18.85
		D)	$0.75


8.	Joshua Levine deposits $250 in an ordinary annuity at the end of each quarter in an account earning 6 percent interest compounded quarterly. According to the table below, what is the future value of the account in 2 years? Chapter 5 Savings Accounts 8
		A)	$2,108.21
		B)	$505.00
		C)	$503.75
		D)	$250.00


9.	Your savings account shows a previous balance of $417.25. You received $3.13 in interest. You made deposits of $25.00, $98.65, and $74.38. You had 2 withdrawals each of $25.00. What is your new balance?
		A)	$568.41
		B)	$590.28
		C)	$593.41
		D)	$668.41


10.	Jamal Kennedy deposits $275.00 in a savings account. The account pays an annual interest rate of 5 percent. He makes no other deposits or withdrawals. After 3 months, the interest is calculated. How much simple interest did his money earn?
		A)	$3.44
		B)	$13.75
		C)	$278.44
		D)	$263.75