Math 141 Practice What is the APY for 6% compounded weekly? A) 6.00% B) 6.09% C) 6.18% D) 7.25%

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1 Math 141 Practice 2 1. Suppose you invest in an account that pays 6% interest, compounded continuously. You would like your investment to grow to $8000 in 14 years. How much would you have to invest in order for this to happen? A) $3,454 B) $3,504 C) $3,404 D) $3, Suppose you invest in an account that pays 6% interest, compounded quarterly. You would like your investment to grow to $8000 in 14 years. How much would you have to invest in order for this to happen? A) $2125 B) $2290 C) $2650 D) $ What is the APY for 6% compounded weekly? A) 6.00% B) 6.09% C) 6.18% D) 7.25% 4. A man cuts back on his latte habit and instead makes $20 deposits each month into a savings account earning 6% interest compounded monthly. He continues these deposits for eight years. How much will the account be worth after eight years? A) $1920 B) $2457 C) $2941 D) $ John bought a house in 1947 for $19,000 and sold it in Ifthe 1947 CPI is 22.3 and the 1997 CPI is 160.5, how much would the house be worth in 1997 dollars? A) $115,157 B) $101,086 C) $94,921 D) $25,356 Page 1

2 6. This table describes the share prices ofthe fictional mutual funds ABC and XYZ: Fund Jan 1st Sept 1st ABC $43 $29 XYZ $25 $37 Suppose that you invest $100 in ABC and $200 in XYZ on Jan 1st. What is your investment worth on Sept 1st? A) $103 B) $ C) $ D) $ Five years after paying $8000 for some shares ofa risky stock, you sell the shares for $4500 (at a loss). Compute the annual returrn to the nearest percent. A) -9% B) -11% C) -14% D) -18% 8. Your friend tells you that he bought a $1000 Treasury bond with a coupon rate of 5% on which he nevertheless only gets a 4% annual return on investment. How much did he pay for the bond? A) $1,000 B) $1,250 C) $1,333 D) $1, Ellie takes out a loan to purchase a car. The interest rate is 7.5% compounded monthly and Ellie has four years to repay the $12,000 she borrowed. What are Ellie's monthly payments? A) $95.46 B) $ C) $ D) $ For a test, with scores close to nonnally distributed, the mean was 65% and the standard deviation was 11 %. Sally has a score of83/1 00. This places her in the top A) 32 percentile. B) 35 percentile. C) 16 percentile D) 20 percentile. Page 2

3 11. Suppose you are married filing separately with two dependent children, and you had a taxable income of $38,600 in Assuming you are not entitled to a tax credit for either child, how much income tax did you pay? A) $9,650 B) $5,420 C) $6,207 D) $ Kathrin earns $2500 after tax and her parents support her to the tune of$300 a month. She lives in San Francisco and her rent is $1200. Her other housekeeping costs are $300 (food), $350 (entertainment), 200 (clothing), 180 (transportation). She is also paying off old medical bills: $300 a month. At the end of the month, she has A) a surplus of$270. B) a deficit of$30. C) a deficit of$2530. D) a surplus of $ Below are the lengths (in minutes) ofphone calls made on an 800 line to a business on one day. Find the five-number summary for this data. 14,6, 12, 19,2,35,5,4,3, 7, 5, 8 A) 5,8, 14, 15.5,20 B) 2,4, 7, 14,35 C) 2,4,6, 12, 19 D) 2,4.5,6.5, 13, Below is a list ofthe number of dogs owned by families in a particular neighborhood: 4,3,7,1,5,1,2,9,0,3 What is the standard deviation for this data? A) 2.8 B) 5.6 C) 7.3 D) 8.1 Page 3

4 15. Given the histogram below for a set ofdata, which ofthe following statements is true? A) The five-number summary would describe the data better than the mean and standard deviation. B) The mean and standard deviation would describe the data better than the fivenumber summary. C) Either the mean and standard deviation or the five-number summary would be equally good to describe the data. D) Neither the mean and standard deviation nor the five-number summary could be used to describe the data. 16. Given the histogram below for a set ofdata, which statement is true? A) For the set ofdata shown, the mean and the median are about equal. B) For the set of data shown, the mean is greater than the median. C) For the set of data shown, the median is greater than the mean. D) For the set ofdata shown, the relationship between the mean and the median cannot be determined. 17. How does an outlier effect the correlation? A) A single outlier has no effect. B) A single outlier has minimal effect. C) A single outlier can change the value ofthe correlation, but not its sign. D) A single outlier can change the value and the sign ofthe correlation. Page 4

5 18. Ifa regression line for two variables has a small positive slope, then A) the variables are positively associated. B) the variables are negatively associated. C) the association ofthe variables cannot be determined. D) the variables have no association with each other. 19. An airline has determined that the relationship between the number ofpassengers on a flight and the total weight (in pounds) ofluggage stored in the baggage compartment can be estimated by the least-squares regression equation y :::: x. Predict the weight ofluggage for a flight with 125 passengers. A) 402 B) 3625 C) 10,125 D) 34, Suppose the points ofa scatterplot lie close to the line y :::: 2x - 5, then the correlation between x and y A) is2 B) is close to 1 C) is close to -1 D) cannot be determined PageS

6 Answer Key LA 2. D 3. C 4. B 5. A 6. B 7. B 8. B 9. D 10. C 11. C 12. A B.D 14. A 15. A 16. B 17. D 18. A 19. B 20. B Page 6

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