HOMEWORK

Question 1 of 25 : Select the best answer for the question.

1.   Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is

2.   In an ordinary annuity, when does the interest on a yearly investment start building interest?

3.   At the beginning of each year for 14 years, Sherry Kardell invested $400 that earns 10% annually. What is the future value of Sherry's account in 14 years?

5.   In calculating the daily balance, cash advances are

6.   Federal Express bought material handling equipment for its hub operations that cost $180,000. Using the MACRS, what is the depreciation expense in year 3 (using a five-year class)?

7.   If a car is depreciated in four years, what is the rate of depreciation using twice the straight-line rate?

8.   Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years. What are Jen's total finance charges?

9.   Depreciation expense is located on the

10.   Megan Mei is charged 2 points on a $120,000 loan at the time of closing. The original price of the home before the down payment was $140,000. How much do the points in dollars cost Megan?

11.   In using horizontal analysis, comparative reports are

12.   Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6 ½% for 30 years. Using the tables in the Business Math Handbook that accompanies the course textbook, determine his monthly payment.

13.   When are annuity due payments made?

14.   At the beginning of each year, Bill Ross invests $1,400 semiannually at 8% for nine years. Using the tables in the Business Math Handbook that accompanies the course textbook, determine the cash value of the annuity due at the end of the ninth year.

15.   Dick Hercher bought a home in Homewood, Illinois, for $230,000. He put down 20% and obtained a mortgage for 25 years at 8%. What is the total interest cost of the loan?

16.   The average daily balance is equal to the sum of daily balances

17.   An annuity due can use the ordinary annuity table if one extra period is added and

20.   Joe Sullivan invests $9,000 at the end of each year for 20 years. The rate of interest Joe gets is 8% annually. Using the tables in the Business Math Handbook that accompanies the course textbook, determine the final value of Joe's investment at the end of the 20th year on this ordinary annuity.

21.   Graduated payments result in the borrower paying

22.   What does an amortization schedule show?

23.   Open credit in a revolving charge plan results in

24.   Cost of merchandise sold equals beginning inventory

25.   Connie made deposits of $2000 at the beginning of each year for four years. The rate she earned is 5% annually. What is the value of Connie's account in four years?