CAP Business Math and Calculations 2

Question 1

Using the simple interest formula I = PRT, calculate the interest on a $5,000 loan at 6% annual interest for 90 days (use a 360-day year).

Accepted Answer

$75.00

Answer

$73.97

Answer

$74.52

Answer

$300.00

Question 2

A product that costs $40.00 is marked up by 25%. What is the selling price?

Accepted Answer

$50.00

Answer

$45.00

Answer

$48.00

Answer

$52.00

Question 3

An item is on sale for $68.00, which is 20% off the original price. What was the original price?

Accepted Answer

$85.00

Answer

$80.00

Answer

$82.00

Answer

$88.00

Question 4

A company borrows $10,000 at 8% annual interest for 6 months. How much simple interest will be owed?

Accepted Answer

$400

Answer

$800

Answer

$480

Answer

$240

Question 5

A company purchases 500 units at $3.50 each and receives a 10% trade discount. What is the net cost?

Accepted Answer

$1,575.00

Answer

$1,600.00

Answer

$1,625.00

Answer

$1,750.00

Question 6

An accounts receivable balance of $12,000 increases by 15% over the prior month. What is the new balance?

Accepted Answer

$13,800

Answer

$13,200

Answer

$13,500

Answer

$14,400

Question 7

Which formula correctly calculates the percent of increase between two values?

Accepted Answer

(New Value − Old Value) ÷ Old Value × 100

Answer

(Old Value − New Value) ÷ New Value × 100

Answer

(New Value ÷ Old Value) × 100

Answer

(Old Value ÷ New Value) × 100