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# Cost of goods sold under FIFO

Simple interest, principal, etc.

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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?

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:

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:

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:

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:

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:

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:

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:

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:

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:

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?

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:

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:

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?