CAP Business Math and Calculations 1 — Questions and Answers
Question 1: What is 15% of $2,400?
- $240.00
- $360.00 (Correct answer)
- $480.00
- $320.00
Correct answer: $360.00
$2,400 × 0.15 = $360.00.
Question 2: A vendor invoice shows terms of 3/10, n/30. What does '3/10' mean?
- A 3% discount is available if the invoice is paid within 10 days (Correct answer)
- $3 is discounted on orders over $10
- Payment may be made in 3 installments within 10 days
- A 30% discount applies if paid within 3 days
Correct answer: A 3% discount is available if the invoice is paid within 10 days
Trade discount terms written as 3/10 mean the buyer earns a 3% discount if the invoice is paid within 10 days of the invoice date.
Question 3: An invoice totals $850.00 and a 2% early-payment discount applies. What is the discounted amount due?
- $832.00
- $833.00 (Correct answer)
- $830.00
- $817.00
Correct answer: $833.00
$850.00 × 0.02 = $17.00 discount; $850.00 − $17.00 = $833.00.
Question 4: What is 3/8 expressed as a decimal?
- 0.275
- 0.325
- 0.375 (Correct answer)
- 0.425
Correct answer: 0.375
3 ÷ 8 = 0.375.
Question 5: An employee earns $18.50 per hour and works 42 hours in a week. Overtime (hours over 40) is paid at 1.5× the regular rate. What is the total gross pay?
- $777.00
- $795.50 (Correct answer)
- $795.75
- $740.00
Correct answer: $795.50
Regular pay: $18.50 × 40 = $740.00; OT rate: $18.50 × 1.5 = $27.75; OT pay: $27.75 × 2 = $55.50; Total: $740.00 + $55.50 = $795.50.
Question 6: Monthly sales total $45,000 and cost of goods sold is $27,000. What is the gross profit margin?
- 35%
- 40% (Correct answer)
- 45%
- 60%
Correct answer: 40%
Gross profit = $45,000 − $27,000 = $18,000; margin = $18,000 ÷ $45,000 = 40%.
Question 7: What is the result of 125 × 0.08?
- $8.00
- $10.00 (Correct answer)
- $12.50
- $15.60
Correct answer: $10.00
125 × 0.08 = 10.00.
