# Cost of goods sold under FIFO

Simple interest, principal, etc.

#### Solution Preview

Top of Form

1

Marks: 1

The length of time a principal is invested, given interest, principal, and rate, can be determined using which of the following formulas?

Choose one answer.

a. T=I x P x R

b. T=(PxR)/I

c. T=I/(PxR)

d. T x R = P/I

b. T=(PxR)/I

2

Marks: 1

A six-month investment of $50,000 yields a return of 8% simple interest. The maturity value is:

Choose one answer.

a. $52,000

b. $52,667

c. $54,000

d. $58,000

a. $52,000

(50000*8%*6/12= 52000)

3

Marks: 1

A sum of $8,000 is invested at a rate of 9¼% for 3 months. Interest on this sum totals:

Choose one answer.

a. $185

b. $190

c. $228

d. $740

=8000*9.25%*3/12

=$185

Thus option a. $185

4

Marks: 1

John pays $850 interest on a 2-year loan at 8½ % simple interest. The amount of the loan is:

Choose one answer.

a. $ 4,250

b. $ 5,000

c. $10,000

d. $14,450

c. $10,000

5

Marks: 1

Bill invests $12,000 in an account paying 8 1/2% simple interest and receives $13,530 at the end of the investment term. The period for which the money was invested is:

Choose one answer.

a. 9.5 months

b. 12 months

c. 16 months

d. 18 months

e. 22 months

d. 18 months

6

Marks: 1

Martha receives $3,000 every six months from an investment paying 10% simple interest. She receives all interest paid on her investment and never reduces the principal. Her investment totals:

Choose one answer.

a. $15,000

b. $30,000

c. $60,000

d. $90,000

In sufficient data as the duration is not mentioned

7

Marks: 1

Exact interest on a loan of $12,000 at 9% simple interest for 150 days is:

Choose one answer.

a. $443.84

b. $450.00

c. $540.00

d. $810.00

=9%*12000*150/365

=$443.84

a. $443.84

8

Marks: 1

A loan of $2,000 is issued January 1 and due April 15. If the interest rate is 7½%, the maturity value, using exact interest, is:

Choose one answer.

a. $2,040.27

b. $2,043.15

c. $2,043.75

d. $2,150.00

Interest= 2000*7.5%*107/365=43.75

Amount= 2000+43.75

=2043.75

c. $2,043.75

9

Marks: 1

Connor invests $6,000 at 8½% simple interest for 42 months. The future value of the investment is:

Choose one answer.

a. $7,530

b. $7,785

c. $7,980

d. $8,040

Interest=6000*8.5%*42/12

Amount= 6000+1785

=$7785

b. $7,785

10

Marks: 1

Lang receives $6,400 from an investment made at 12% simple interest exactly five years ago. The initial sum invested was:

Choose one answer.

a. $3,839.23

b. 4,000.00

c. $4,800.00

d. $6,037.73

b. $4,000.00

11

Marks: 1

In five years a new truck will cost Angelina $40,000. How much must she invest now at 9% simple interest to purchase the truck in five years?

Choose one answer.

a. $26,666.67

b. $27,586.21

c. $33,898.31

d. $38,277.51

b. $27,586.21

12

Marks: 1

An 8 month loan of $15,000 is discounted at a rate of 9%. The simple discount amount of the eight-month loan is:

Choose one answer.

a. $540

b. $900

c. $1,080

d. $1,350

=15000*9%*8/12

=900

b. $900

13

Marks: 1

Bishop secures a discount interest loan with a maturity value of $3,200 at a discount rate of 9 1/4% for 9 months. The true rate of interest is:

Choose one answer.

a. 8.97%

b. 9.25%

c. 9.94%

d. 10.09%

b. 9.25%

14

Marks: 1

Francois needs $6,000 in cash to purchase equipment. If he is offered a discounted loan at 9% for 18 months, how much will he have to borrow to be able to use $6,000 today?

Choose one answer.

a. $5,286.34

b. $6,593.41

c. $6,624.28 ...

#### Solution Summary

This explains the cost of goods sold under FIFO