1. Federal Express bought material handling equipment for its hub operations that cost $180,000. Using the
MACRS, what is the depreciation expense in year 3 (using a five-year class)?
2. What is a sinking fund?
A. It aids in meeting a future obligation.
B. It doesn’t compound its money.
C. It’s not really an annuity.
D. It requires one lump sum payment at the beginning.
3. Megan Mei is charged 2 points on a $120,000 loan at the time of closing. The original price of the home
before the down payment was $140,000. How much do the points in dollars cost Megan?
4. What does an amortization schedule show?
A. The increase to principal
B. The increase in loan outstanding
C. The balance of interest outstanding
D. The portion of payment broken down to interest and principal
5. Dick Hercher bought a home in Homewood, Illinois, for $230,000. He put down 20% and obtained a
mortgage for 25 years at 8%. What is the total interest cost of the loan?
6. A new piece of equipment costs $18,000 with a residual value of $600 and an estimated useful life of
five years. Assuming twice the straight-line rate, the book value at the end of year 2 using the decliningbalance
7. In an ordinary annuity, when does the interest on a yearly investment start building interest?
A. At the beginning of the first period
B. After the second period ends
C. At the end of the first period
D. During the first period
8. Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are
$45,000. Assuming there are no prepaid expenses, the dollar amount of merchandise inventory is
9. Which one of the following methods is not based on the passage of time?
A. Units-of-production method
B. None of these
C. Declining-balance method
D. Straight-line method
10. A truck costs $16,000 with a residual value of $1,000. It has an estimated useful life of five years. If
the truck was bought on July 3, what would be the book value at the end of year 1 using straight-line rate?
11. Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at
5% for 35 years. What are Jen’s total finance charges?
12. ***** ***** bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid
$390 monthly for 70 months. What is the total finance charge?
13. If a car is depreciated in four years, what is the rate of depreciation using twice the straight-line rate?
14. Given a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?
15. Use the following information to answer the question:
Cost of car: $26,000
Residual value: $6,000
Life: 5 years
Using the given information, determine the depreciation expense for the first year straight-line method?
16. Open credit in a revolving charge plan results in
A. as many charged purchases till credit limit is reached.
B. the U.S. Rule being applied to each purchase.
C. as many cash purchases till credit limit is reached.
D. one purchase per month.
17. John Sullivan bought a new Brunswick boat for $17,000. He made a $2,500 down payment on it. The
bank’s loan was for 60 months, and the finance charges totaled $4,900. What is his monthly payment?
18. The acid test ratio does not include
D. accounts receivable.
19. A $104,000 selling price with $24,000 down at 81∕2% for 25 years results in a monthly payment of
20. Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as
12.5%. Jay Corporation’s stockholders’ equity to the nearest dollar is
21. Ted Williams made deposits of $500 at the end of each year for eight years. The rate is 8%
compounded annually. Using the tables in the Business Math Handbook that accompanies the course
textbook, calculate the value of Ted’s annuity at the end of eight years.
End of exam
22. An annuity due can use the ordinary annuity table if one extra period is added and
A. two payments are added to total value.
B. three payments are subtracted from total value.
C. one payment is added to total value.
D. one payment is subtracted from total value.
23. At the beginning of each year for 14 years, Sherry Kardell invested $400 that earns 10% annually.
What is the future value of Sherry’s account in 14 years?
24. Abe Aster bought a new split level for $200,000. Abe put down 30%. Assuming a rate of 111∕2% on a
30-year mortgage, use the tables in the Business Math Handbook that accompanies the course textbook to
determine Abe’s monthly payment.
25. Depreciation expense in the declining-balance method is calculated by the depreciation rate
A. divided by book value at beginning of year.
B. times accumulated depreciation at year end.
C. times book value at beginning of year.
Why Choose Us
At Myhomeworkwriters.com, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.
Professional Academic Writers
With Myhomeworkwriters.com, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.
Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.
My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.
Myhomeworkwriters.com maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.
Customer Support 24/7
Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email: firstname.lastname@example.org.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Homework Writing Services
My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.
At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.
Admission and Business Papers
With Myhomeworkwriters.com, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.
Editing and Proofreading
Myhomeworkwriters.com has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.
My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.