CMAT Business Mathematics

Question 1

What is the present value of $1,210 received 2 years from now at a 10% discount rate?

Accepted Answer

$1,000

Answer

$900

Answer

$1,100

Answer

$1,050

Question 2

A product costs $80 to produce and is sold for $100. What is the profit margin?

Accepted Answer

20%

Answer

25%

Answer

80%

Answer

125%

Question 3

If a stock was bought at $50 and sold at $65, what is the return on investment?

Accepted Answer

30%

Answer

25%

Answer

28%

Answer

33%

Question 4

A company has fixed costs of $50,000, variable cost per unit of $10, and sells at $20. What is the break-even quantity?

Accepted Answer

5,000

Answer

2,500

Answer

7,500

Answer

10,000

Question 5

What is the effective annual rate (EAR) for a 12% nominal rate compounded monthly?

Accepted Answer

12.68%

Answer

12%

Answer

12.36%

Answer

13%

Question 6

A company's current ratio is 2.5 and current liabilities are $40,000. What are the current assets?

Accepted Answer

$100,000

Answer

$60,000

Answer

$80,000

Answer

$120,000