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Calculator Arithmetic-2
1. Consider a rope wrapped around the Earth's equator. We know that the radius of the
Earth is about 4000 miles. Suppose now that the rope is to be suspended exactly 150
miles above the equator. By what percent must the rope be lengthened to accomplish
this?
A) 0.04%
B) 0.12%
C) 3.75%
D) 0.37%
E) 0.08%
2. Sometimes manufacturers give more than one discount instead of a single trade
discount- for example, in trading with large-volume retailers. Such a series discount is
quoted as a sequence of discounts, taken one after another. Suppose a manufacturer
normally gives a trade discount of 45%, but it has too much of the item in inventory and
so wants to sell more. In this case, the manufacturer may give all retailers another
discount of 15% and may perhaps extend yet another discount of 10% to a specific
retailer it wants to land as a client. In this example, the series discount would be 45%,
15%, 10%, calculated one after another, like this: For an item with a suggested retail
price of $100.00, applying the first discount gives 100.00 − 45% × 100.00 = 55.00
dollars. The second discount of 15% is applied to the $55.00 as follows: 55.00 − 15% ×
55.00 = 46.75 dollars. Now the third discount gives the final cost price of 46.75 − 10%
× 46.75 = 42.08 dollars. What single trade discount would give the same cost price as a
series discount of 29%, 26%, and 15%? Round your answer to two decimal places.
A) 76.04%
B) 70.00%
C) 53.65%
D) 44.66%
E) 28.05%
3. You have just received word that your original investment of $1450 has increased in
value by 11%. What is the value of your investment today?
A) $1709.50
B) $1809.50
C) $1609.50
D) $1624.00
E) $1754.50
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4. Evaluate the formula ( x + y )− x using x = 2 and y = 4 . Round your answer to four
decimal places.
A) 2.0625
B) 4.0000
C) 0.0278
D) 0.0008
E) 2.0000
5. Business and finance texts refer to the value of an investment at a future time as its
future value. If an investment of P dollars is compounded yearly at an interest rate of r
as a decimal, then the value of the investment after t years is given by
Future value = P × (1 + r)t.
In this formula, (1 + r)t is known as the future value interest factor, so the formula above
can also be written
Future value = P × Future value interest factor.
Financial officers normally calculate this (or look it up in a table) first. Suppose you
have an investment which is compounded yearly at the rate of 6%. Find the future value
interest factor for a 13-year investment.
A) 1.0613
B) 613
C) 713
D) 0.9413
E)
P
1.0613
6.
(
)
7.1 ⎞
⎛
Perform the calculation of the expression 8−9 + 11 + π ⎜ e 2 +
⎟ and report the
6.2 ⎠
⎝
answer rounded to two decimal places.
A) 48.87
B) 55.12
C) 27.68
D) 72.08
E) 66.84
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7. Some populations, such as bacteria, can be expected under the right conditions to show
exponential growth. If 3000 bacteria of a certain type are incubated under ideal
conditions, then after t hours we expect to find 3000 × 1.24t bacteria present. If we have
11000 bacteria, how many bacteria would we expect to find after 16 hours? Round your
answer to the nearest whole number.
A) 343,668
B) 3,667,840
C) 332,668
D) 448,727
E) 361,877
8.
Calculate:
A)
B)
C)
D)
E)
6.51.5
. Round your answer to two decimal places.
8.6
6.57
1.13
15.40
1.93
3.48
9. Evaluate: e −9 − π 8 . Round your answer to two decimal places.
A) –6507.57
B) –9488.53
C) 1385.45
D) –29,809.10
E) –17,591.61
10. Business and finance texts refer to the value of an investment at a future time as its
future value. If an investment of P dollars is compounded yearly at an interest rate of r
as a decimal, then the value of the investment after t years is given by
Future value = P × (1 + r)t.
In this formula, (1 + r)t is known as the future value interest factor, so the formula above
can also be written
Future value = P × Future value interest factor.
Financial officers normally calculate this (or look it up in a table) first. Calculate the 9year future value if your initial investment is $5700 at the rate of 14%.
A) $24,236.11
B) $18,536.11
C) $64,182.00
D) $19,047.84
E) $12,198.00
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Answer Key
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
C
D
C
C
A
B
A
D
B
B
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