College Math 2 / DUE BY 9AM 12/6/2016
TheKingsMrs
final_examination_-_12_2016.docx
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GCMII: Final Examination
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STUDENT NAME: ______________________________
DATE: December 6, 2016 Attach all worksheets
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PART I: PERSONAL FINANCE: Credit Cards 35 total points
1. A credit card issuer calculates interest using the average daily balance method. The monthly interest rate is 2% of the average daily balance. The following transactions occurred during the September 1st – September 30th billing period:
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Transaction Description
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Transaction Amount |
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Previous balance:
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$3,800 |
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September 1
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Billing date |
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September 5 Payment
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$800.00 credit |
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September 9 Charge: Gas
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$ 40.00 |
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September 19 Charge: Clothing
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$160.00 |
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September 27 Charge: Airline ticket
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$200.00 |
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September 30
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End of billing period |
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Payment Due Date:
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October 9th |
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a. Find the average daily balance for the billing period. Round to the nearest cent. |
$
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b. Find the interest to be paid on October 1st, the next billing date. Round to the nearest cent. |
$
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c. Find the balance due on October 1st.
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$
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d. What is the minimum monthly payment due by October 9th? This credit card requires a $10 minimum monthly payment if the balance due at the end of the billing period is less than $360. Otherwise, the minimum monthly payment is 1/36 of the balance due at the end of the billing period, rounded up to the nearest whole dollar. |
$ |
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e. Given the rate of this credit card, how much of the minimum monthly payment will go towards interest given to the bank? |
$
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f. Given the rate of this credit card, how much of the minimum monthly payment will go to towards reducing the balance?
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$ |
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g. You decide to pay off the balance over four years. If there are no further purchases charged to the card, how much must you pay each month? |
$ |
PART II: PERSONAL FINANCE: Mortgages 40 total points
Round all answers to the nearest dollar.
A. The price of a home is $120,000. The bank requires a 15% down payment. The buyer is offered two mortgage options:
· Option A: 30-year fixed at 7% with closing costs of $2,000 and one point
· Option B: 30-year fixed at 6.5% with closing costs of $1,500 and two points
Which mortgage loan has the greater total costs (closing costs + the amount paid for points + total cost of interest)? By how much?
Answer: Option A 󠄀[ ] Option B [ ]
Difference in total costs: $_______________________
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OPTION A 30-year fixed at 7% with closing costs of $2,000 + 1 point |
OPTION B 30-year fixed at 6.5% with closing costs of $1,500 + 2 points |
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Down payment:
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Closing Costs:
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Points to be paid:
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Total Cash to Close:
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Loan Amount:
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Monthly Mortgage Amount:
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Total Amount Paid:
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Total Interest Paid:
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Total Cost of Each Option:
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B. Using the financial industry’s rule of thumb for monthly mortgage limits set at 28% of gross monthly income - how much would the buyer have to earn yearly to be able to afford the option chosen in Part I?
Answer: $______________________________
C. How much would the buyer have to deposit today into an account that earns 4% interest, compounded quarterly to have enough saved for the total closing costs in 5 years?
Answer $______________________________
PART III: STATISTICS 25 total points
7. Teenage Drug Use
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Country |
Czech Rep |
Denmark |
UK |
Finland |
Ireland |
Italy |
N. Ireland |
Norway |
Portugal |
Scotland |
US |
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(x): % Marijuana |
22 |
17 |
40 |
5 |
37 |
19 |
23 |
6 |
7 |
53 |
34 |
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(y): % Other Illegal Drugs |
4 |
3 |
21 |
1 |
16 |
8 |
14 |
3 |
3 |
31 |
24 |
a. Make a scatter plot for the given data.
b. State the correlation between the two variables: Pos Neg No Correlation
c. Determine the correlation coefficient, rounded to two decimal places, between the percentage of people in a country who are literate and the percentage who are undernourished.
Answer: _________________
d. Find the equation of the regression line for the percentage of teenagers who have used marijuana and the percentage who have used other drugs. Round m and b to two decimal places.
y = mx + b Answer: _________________
e. What percentage of teenagers, to the nearest percent, can we anticipate using illegal drugs other than marijuana in a country where 10% of teenagers have used marijuana?
Answer: __________________
PART IV: EXTRA CREDIT 20 total points
EC1: How much more would you earn in the first investment than in the second investment? Please round answers to the nearest dollar.
$50,000 invested for 30 years at 10% compounded annually Amt. earned: $______________
$50,000 invested for 30 years at 5% compounded monthly Amt. earned: $______________
How much more will be earned in the first investment? Difference: $______________
EC2 How much money should be deposited today in an account that earns 9.5% compounded monthly so that it will accumulate to $10,000 in three years?
Amt. deposited: $___________
EC3: License plates in a particular state display 4 letters followed by 2 numbers. How many different license plates can be manufactured for this state?
Answer: _________________________
EC4: A group consists of four men and five women. Three people are selected to attend a conference. How many ways can three people be selected from this group of nine?
Answer: _________________________
Fall 2016 | Professor R. Jones Page 1
