Name ________________________________________________________
Exam #2, Math 101, Winter 2008
1. Scott Distributors receives a $4,320.85 invoice dated May 11. Credit terms are 2/15, n/30,
with a penalty of 6% charged for late payment. Scott makes a partial payment of $2,500 on
May 24 and pays the balance on June 12th. Calculate the balance due after the May 24
payment.
1,769.83
2. Wilson’s Produce pays $0.12 per pound for corn on the cob. If Wilson’s buys 600 pounds of
corn on the cob, marks it up 195 percent on cost, and anticipates a spoilage factor of 20%, what
will the selling price per pound be?
$0.443/lbs.
3. a) You pay $60.00 for merchandize and sell it at a markup of 32% based on cost. What is the
selling price?
79.20
b) If patio furniture costs $380.00 and sells for $475.00, what is the percent of markup based on
selling price?
20%
c) KC Mills manufactures carpet at a cost of $20.00 per square yard. The carpet is sold at
$27.60 per square yard. KC marks up based on cost. Find the markup and the markup
percentage.
$7.60, 38%
4. a) A set of four tires originally sold for $340.00. They were subsequently marked down to sell
for $238.00. What was the percent of markdown?
30%
b) Pete’s Grocery bought roses to sell in his store at $1 per rose. He marked them up 300%
based on cost. After a week, he marked the remaining roses down 50% and then three days
later, marked them down another 30%. What was the finally selling price of the roses?
$1.40
5. a) Smith Corporation pays its employees based on a 40-hour week. The company pays timeand-a-half for hours over 40. Workers scheduled for Sunday receive doubletime. Gretchen
worked the following hours:
M
8.5
T
7
W
7.5
Th
9.5
F
6
Sa
5.5
Su
4
How much was Gretchen’s gross pay if her base rate is $7.50/hr?
405
b) C & M Industries pays its employees on a differential piece rate as follows:
Boxes Packed Per Week
1-100
101-180
181 and over
Piece Rate Per Box
$1.90
$2.40
$3.05
If Sue packed 200 boxes, what were her gross wages?
443.00
c) Karen is paid $800 per week plus 10% commission on sales. If her sales last week were
$4,622.00, what was her gross income?
1262.20
6. Gifford is paid a semimonthly salary of $1,722.80. He is married and claims 6 exemptions.
Based on the percentage method, what is his taxable income?
947.78
7. a) What is the simple interest on an 8.5%, $8,650.00 loan for 4 years?
2,941.00
b) Gordon borrows for $17,500 for 120 days on March 17. What day is the loan due to be paid
using exact time?
July 15
c) What is the interest owed in part b if ordinary interest/exact time is used and the rate is 8%?
$466.67
8. a) Douglas Industries purchases supplies costing $3,500.00 with credit terms of 2/10, n/45.
Douglas does not have the fund to pay within 10 days and explores the possibility of borrowing
the necessary amount to take advantage of the discount. The local bank is willing to lend
Douglas the money at 9% for 45 days at ordinary interest. What would the interest on the loan
be?
38.59
b) K.C. Wholesalers receives an $11,000.00, 9.375% exact time, ordinary interest note dated
June 12. The note is due October 28th. On August 21, K.C. discounts the note at the Safety
National Bank at a discount rate of 12%. What proceeds should K.C. Wholesalers receive?
11,137.02
9. a) A set of patio furniture sells for $935.00 on the installment plan which includes the finance
charge. The payment plan calls for 15% down and the balance in 12 equal payments. What is
the down payment? And what is the amount of each payment?
140.25, 66.23
b) Joan purchased a new car for $28,999.00. She put $6,299.00 down and paid $428.00 for 60
months. What was Joan’s total finance charge?
2,980.00
10. What is the refund fraction on a 24 month loan that is paid off with 4 months remaining?
10/300
Bonus. Given the following:
30 day billing cycle
5/18 Billing Date
5/25
5/29
6/8
What is the average daily balance?
545.00
Previous Balance
Payment
Charge
Payment
$755.00
400.00
200.00
100.00
Table for Figuring Withholding According to the Percent Method
Payroll Period
One
Withholding
Allowance
Weekly . . . . . . . . . . .
$
59.62
Biweekly . . . . . . . . . .
119.23
Semimonthly. . . . . . . . .
129.17
Monthly. . . . . . . . . . .
258.33
Quarterly . . . . . . . . . .
775.00
Semiannually. . . . . . . . .
1,550.00
Annually . . . . . . . . . .
3,100.00
11.92
Daily or miscellaneous (each day of
the payroll period) . . . . . . .
(b) MARRIED person
If the amount of wages
(after subtracting
withholding allowances) is:
SEMIMONTHLY Payroll Period
(a) SINGLE person (including head of household) —
If the amount of wages
(after subtracting
withholding allowances) is:
Not over $110
. . . .
The amount of income tax
to withhold is:
Not over $333 . . . .
$0
Over —
But not over —
of excess over —
$110
—$404 . . 10%
—$110
$404
—$1,283 . . $29.40 plus 15%
—$404
$1,283
—$2,854 . . $161.25 plus 25%
—$1,283
$2,854
—$6,196 . . $554.00 plus 28%
—$2,854
$6,196 —$13,383 . . $1 ,489.76 plus 33%
—$6,196
$13,383
. . . . . .
$3,861 .47 plus 35%
—$13,383
The amount of income tax
to withhold is:
$0
Over —
But not over —
of excess over —
$333
—$929 . . 10%
—$333
$929 —$2,698 . . $59.60 plus 15%
—$929
$2,698 —$4,919 . . $324.95 plus 25%
—$2,698
$4,919 —$7,731 . . $880.20 plus 28%
—$4,919
$7,731 —$13,588 . . $1,667.56 plus 33%
—$7,731
$13,588 . . . . . .
$3,600.37 plus 35% —$13,588
Numbers for Dates of the Year
Month
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Jan.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Feb.
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
#
Mar.
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
Apr.
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
May
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
June
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
July
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
Aug.
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
Sept.
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
Oct.
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
Nov.
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
Dec.
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
Months
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Sum of Digits
1
3
6
10
15
21
28
36
45
55
66
78
91
105
120
136
153
171
190
210
Rule of 78
Months
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Sum of Digits
231
253
276
300
325
351
378
406
435
465
496
528
561
595
630
666
703
741
780
820
Months
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
Sum of Digits
861
903
946
990
1,035
1,081
1,128
1,176
1,225
1,275
1,326
1,378
1,431
1,485
1,540
1,596
1,653
1,711
1,770
1,830