CONSUMER MATH, PART 3 1. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance. A. liability B. no-fault C. medical D. collision 2. Jane Marko buys a car for $11,400.00. In three years, the car depreciates 48% in value. How much is the car worth in three years? A. $5,472.00 B. $3,800.00 C. $4,788.00 D. $5,928.00 3. Which of the following devices imparts ownership in a corporation? A. Bond B. Stock C. U.S. Treasury Bill D. Savings account 4. Ray Cupple bought a basic car costing $10,150.00, with options costing $738.00. There is a 6% sales tax in his state and a combined $50.00 license and registration fee. What was Ray's total cost? A. $11,541.28 B. $11,591.28 C. $10,938.00 D. $11,547.00 5. What type of stock receives an equal part of the profits on each share to be distributed after all other obligations of a company have been satisfied? A. No-par B. Cumulative preferred C. Preferred D. Common 6. If you have earned income, which of the following retirement devices must you contribute to, by law? A. Pension plan B. Social security (FICA) C. Vesting plan D. IRA 7. The major difference between a calculator and a computer, when performing calculations, is that a A. computer is faster but needs more human assistance. B. calculator is slower and needs more human assistance. C. computer is slower but needs less human assistance. D. calculator is faster but needs more human assistance. 8. Lorenzo has a checkbook balance of $118.00. He writes two checks, one for $9.00 and one for $84.25. He then deposits $95.00. Finally, he uses his calculator to determine his new balance. Which one of the following series represents the correct order in which he should press the keys on his calculator? A. 95 – 118 + 9 – 84.25 B. 118 – 9 – 84.25 + 95 C. 118 – 95 + 84.25 – 9 D. .25 = 118 + 9 / 95 9. A master plan is devised for A. short-term goals. B. investments. C. long-range goals. D. emergencies. 10. _______ health insurance coverage pays for at least part of hospital costs and fees. A. Major medical B. Basic C. PPO D. HMO 11. Which of the following best describes term life insurance? A. The insured can borrow or collect the cash value of the policy. B. The insured is covered during his or her entire lifetime. C. The insured pays the premium until his or her death. D. The insured pays a premium for a specified number of years. 12. Marlin Davies buys a truck for $28,000. In three years, the car depreciates 48% in value. How much is the car worth in three years? A. $14,560 B. $27,052 C. $12,005 D. $14,000 13. Car insurance that pays for your injuries when you're in an accident in your car is _______. A. collision B. comprehensive C. medical D. liability 14. The Hamilton Brush Company issued 2,500 shares of common stock worth $100,000.00 total. What is the par value of each share? A. $250.00 B. $400.00 C. $25.00 D. $40.00 15. With _______ insurance, the insured agrees to pay a specific premium each year until death. A. half life B. whole-life C. endowment life D. limited-payment 16. All insurance is based on a principle called A. premium earnings. B. cash value coverage. C. division of risk. D. investment premiums. 17. The Waverly Brush Company issued 4,000 shares of common stock worth $200,000.00 total. What is the par value of each share? A. $40 B. $500 C. $400 D. $50 18. A _______ is invested by managers in a diversity of stocks, bonds, and other securities. A. series EE bond B. mutual fund C. promissory note D. preferred stock 19. Your _______ should furnish enough money to live on, in an emergency, for six months. A. savings B. IRA C. investments D. interest 20. The coverage included in an automobile insurance policy that covers property damage is _______ insurance. A. supplemental B. term C. major medical D. liability
bank a is lending money at 5.7% interest compounded annually. The rate at bank b is 5.6% compounded monthly, and the rate at bank C is 5.65% compounded quarterly. Which bank will you pay the least interest?
What happens to the bank lending, supply of money, and aggregate demand if the Federal Reserve increases discount rate to 3.5% and why?
Federal Reserve increases discount rate to 3.5 what will happen to the bank lending, supply of money, aggregrate demand and the interest rate and why?
Federal Reserve lowers reserve requirment to 1.25% what wil happen to the bank lending, supply of money, aggregrate demand and the interest rate and why?
Using T-accounts of the First National Bank and Second National Bank, describe what happens when Jane Brown writes a $50 check on her account at the First National Bank to pay her friend Joe Green, who in turn deposits the check in his account at the Second National Bank.
Jose Rodriguez's checking account had a starting balance of $1,234.56. He wrote a check for $115.12 for plumbing supplies and a check for $225.00 for a loan payment. Yesterday he deposited $96.75 in his checking account. What is Jose's current balance? A. $1,441.19 B. $894.44 C. $991.19 D. $1,477.93
Neka Kiser, vice president of operations for Mountain National Bank, has instructed the bank’s computer programmer to use a 365-day year to compute interest on depository accounts (payables). Neka also instructed the programmer to use a 360-day year to compute interest on loans (receivables). Discuss whether Neka is behaving in a professional manner.
These are journal entries for National Bank. I can’t seem to get the balance sheet listed below to balance. If someone has some time and could look at this and maybe give me an idea of what I am doing wrong I would greatly appreciate it.65,000 shares of common stock were sold to investors at $10.00 a shareCash $650,000 drCommon Stock $650,000 crCustomers opened deposit accounts in the amount of $575,000 and National Bank paid out withdrawals of $225,000Cash $350,000 dr Deposit accounts $350,000 crNational bank made $360000 in mortgage loans, collecting an average of 3% loan origination feeLoans 360000 drCash (360000) crCash 10800 drRevenue (10800)National bank borrowed $210,000 from the FLHBCash $210,000 drFLHB Advances $210,000 crCustomers were paid a total of $7500 in interest on their deposit accountsExpenses $7500 drCash 7500 crNational bank purchased on credit office equipment in the amount of $13,250Office Equipment $13250 drAccounts Payable 13250 CrNational bank paid $23000 in wagesExpenses 23000 drCash 23000 crLoan customer paid $39000 in interest on their loansCash $39000 drRevenues $39000 crFHLB bank paid National bank $650 in dividendsCash $650 drRevenue $650 crAll other expenses totaled $16000 for the yearCash $16000 drExpenses 16000crNational bank purchased with cash $6000 of FHLB stockFHLB stock $6000 drCash $6000 crThese are my ending T-Account balancesCash $847,950 drLoans $360,000 drFHLB Stock $6000 drOffice Equipment $13,250 drA/P $13,250 crDeposit accounts $350,000 crFHLB Advances $210,000 crCommon Stock $650,000 crRevenue $50,450 crExpenses $46,500 crRough Draft of Balance SheetAssetsCash $847,950Loans $360,000FHLB Advances $6,000Office Equipment $13,250Revenue $50,450Total Assets $1,277,650Liabilities and EquityDeposit accounts $350000Accounts payable $13,250Expenses $46,500Common Stock $650,000Total Liability & Equity $1,269,750
Dana has a piggy bank(she is just starting to save money in her piggy bank). 1- All of the coins in her bank expect two quarters. 2- All of the coins in her bank except two are nickels 3- All ofthe coins in her bank except two are pennies . How much money does Dana have in her bank?. Write your answer and explanation on the lines below . Show your calculationsin the space provided below.
austin invests 4500 with first national bank at 5 1/4% simple interest. how much interest does austin earn after one year?
(Future value) Leslie Mosallam, who recently sold her Porsche, placed $10,000 in a savings account paying annual compound interest of 6%. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 1, 5, and 15 years. b. Suppose Leslie moves her money into an account that pays 8% or one that pays 10%. Rework part (a) using 8% and 10%. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did?