Numerical Reasoning Financial Numeracy 2

Question 1

An item costs $75 to produce and is sold at a 40% markup. What is the selling price?

Accepted Answer

$105

Answer

Markup = 0.40 × $75 = $30; selling price = $75 + $30 = $105.

Question 2

A mortgage of $200,000 is taken at 5% annual interest for 20 years with simple interest. What is the total interest paid?

Accepted Answer

$200,000

Answer

Total interest = $200,000 × 0.05 × 20 = $200,000.

Question 3

A fund grows from $8,000 to $10,400 over 4 years. What is the average annual percentage growth (simple)?

Accepted Answer

7.5%

Answer

Total growth = $2,400; annual growth = $2,400 ÷ 4 = $600; rate = $600 ÷ $8,000 × 100 = 7.5%.

Question 4

A business has fixed costs of $15,000/month and variable costs of $12 per unit. If 2,500 units are sold at $20 each, what is the monthly profit?

Accepted Answer

$5,000

Answer

Revenue = 2,500 × $20 = $50,000; variable costs = 2,500 × $12 = $30,000; total costs = $30,000 + $15,000 = $45,000; profit = $50,000 − $45,000 = $5,000.

Question 5

An investor buys 200 shares at $45 each and sells them at $52 each. What is the total profit?

Accepted Answer

$1,400

Answer

Profit per share = $52 − $45 = $7; total profit = 200 × $7 = $1,400.

Numerical Reasoning Practice Test

Numerical Reasoning Practice Test

Numerical Reasoning Financial Numeracy 2