20 MCQ's

1.  A math exam consists of 9 multiple- choice question and 6open-ended problems in which all work must be shown. If each person must answer 6 of the multiple-choice and  3 of the open-ended problems. In how many ways can the question and problems be answered?
a. 972
b. 1680
c. 60480
d. 7,257,600

2. You are dealt two cards from a 52 card deck, in succession, without the first card being replaced before the second is dealt. Find the probability of getting two black cards.
a. 75/102
b. ¼
c. 25/102
d. ½

3. You are dealt one card of a standard-52 card deck. Find the probability of being dealt a red card or a 9.
a. 7/13
b. 15/26
c. 27/52
d. 2/13

4. If you are given odds8 to 9 favor if winning a bet. What is the probability winning the bet?
a. 1/17
b. 8/17
c. 9/17
d. 8/9

1. A committee consisting of 6 people to be selected from eight parents and four teacher. Find the probability of selecting three parents and three teachers.
a. 8/33
b. 2/33
c. 100/231
d. 10/11

2. You are dealt one card from a 52- card deck. Then the card is replaced in the deck, the deck is shuffled, and you draw again. Find the probability of getting a five each time.
a. 2/13
b. 1/13
c. 1/221
d. 1/169

3. You are dealt one card from a 52- card deck. Then the card is replaced in the deck, the deck is shuffled, and you draw again. Find the probability of getting a picture card the first time ad a spade the second time.
a. 3/52
b. 1/13
c. 3/13
d. ¼

4.  A architect is considering bidding for the design of a new shopping mall. The cost of drawing plan a submitting a model is $10,000. the probability being awarded the bid is 0.09, and anticipated profit are $100,000,resulting in a possible gain of this amount minus the $100,000 cost for plans and a model. What is the expected value in this situation?
a. -$1000
b.  $9000
c. $8100
d. $8000

1.  You are dealt one card from a standard 52-card deck. Find the probability of being dalt a number greater than 2 and less than 8.
a. 5/13
b. 1/13
c. 6/13
d. 1/52

2. You are taking a multiple-choice test that has 9 question. Each of the question has 3 choice with one correct choice per question. If you select one of the option per question and leave nothing blank. In how may ways can you answer the question?
a. 12
b. 27
c. 769
d. 19,683

3. How many different four- letter secret codes can be formed if the first letter must be an S or a T ? Repetitions are allowed.
a. 72
b. 35,152
c. 421,824
d. 456,976

4. A certain model home can be built on four different lots, painted in six different colors, and can have one or two styles of front doors. How many different option are there for this home?
a. 48
b. 24
c. 12
d. 8

1)  What is the effective interest rate per payment, for payments that occur once every six months, when the interest rate is an annual 20% that is compounded weekly?
a.  20%/26
b.  (1+20%/52)26-1
c.  (1+20%/52)52-1
d. (1+20%/26)26-1

2)  You have made an investment that pays you $2,000 at the end of the first year, and then decreases by 9% each year for 4 more years (5years total). What is the FUTURE worth of this investment? (interest rate = 9%).
a. $10,162
b. $11,027
c. $11,047
d. $6,605

3)  You receive a $1,100 cash flow at Present which will repeat itself every THREE years to infinity. Assuming an annual interest rate of 10%, what would be the Capitalized Equivalent (CE)?
a. $5,055
b. $4,423
c. $4,884
d. $4,261

4)  You took a $5,000 48-month car loan with 10% nominal annual interest rate. How much money do you still owe after the 23rd  payment? (Assume monthly compounding on your interest rate and equal monthly payment).
a. $2616.81
b. $2753.12
c. $2833.69
d. $2851.20

1)  A new packaging machine is expected to cost $175,000, but is expected to increase productivity. Increase in annual revenues because of this equipment is estimated to be $50,000 in the 1st year, $85,000 in the 2nd year and $50,000 in subsequent years. The simple non-discounted payback period is (i=10% ):
a.  Less than 1 year
b.  Between 1 and 2 years
c.   Between 2 and 3 years
d.   Longer than 3 years


2)  A company wants to have $200,000 in a contingency fund 10 years from now.  They will make five equal deposits at the end of years 1 through 5. The amount of the deposit is closest to (interest rate = 10%):
a. $52,760
b. $22,375
c. $20,341
d. $24,325

3)  What is the Present Cost of  a 5 year service contract where you will pay $5000 initially, and this will decrease at a rate of $500/year starting in year one (i.e. your year 1 payment will be $4,500) and will end in year 5 (i.e. 6 total payments).  (i=10% annually compounded)?
a.-$17,204
b.-$19,954
c.-$18,628
d.-$19,523

4)  You are evaluating the purchase of either Machine A with a life of 9 years or Machine B with a life of 6 years. You will need the use of the same type of machine you select for 12 years. What ANALYSIS time frame should you use?
a.  9 years
b.  12 years
c.   18 years
d.  Not enough information to determine