Contemporary Business Mathematics with Canadian Applications 12th edition by S A. Hummelbrunner test

A) $8473.50 B) $4035 C) $5649 D) $5380 E) $11 298
Answer: C
97) Raj works for Honda Pickering on commission based on each unit sold. He gets $700 for every used car he sells
and $975 for every new car. He sold 8 used cars and 5 new cars in January 2020. What was his gross earning in
January?
A) $4875 B) $11,300 C) $10,475 D) $5600
Answer: C
98) Abu sells mutual funds for CIBC. On mutual funds sales, CIBC charges a "front- end load" or gross commission
rate of 5%. Abu is paid on a graduated commission structure. He receives 30% commission on the first $50 000
worth of mutual funds he sells in a month, 40% commission for the next $50 000 worth of mutual funds, and
75% commission on all additional sales in the same month. What is Abu's commission for a month in which he
sells $150 000 worth of mutual funds?
A) $2250 B) $4500 C) $3625 D) $2700 E) $5625
Answer: C
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
99) On March 1, Sam invested $90 000 in a business. On June 1, he invested another $10 000. On July 1, he withdrew
$17 000 to spend on the repair of his house. On September 1, he injected another $2000 into the business. What
was his average investment per month in the business during the year? Assume all months have the same
length or weighting.
Answer: $0 are invested for 2 months
$90,000 are invested for 3 months
$90000 + $10000 = $100,000 are invested for 1 month
$100,000 - $17000 = $83000 are invested for 2 months
$83000 + $2000 = $85000 are invested for 4 months
Average investment =
0 × 2 + 9000 × 3 + 100000 × 1 + 83000 × 2 + 85000 × 4
12
=
876000
12
= $73 000 per month
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
100) The engineering department of a consulting company has 8 junior engineers working at $24.75/hour, 5 senior
engineers working at $39.49/hour, and an engineering manager working at $47.24 per hour. Calculate the
weighted average hourly rate earned by the engineering department.
A) $37.16 B) $34.05 C) $31.62 D) $35.09 E) $88.19
Answer: C
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
101) In 2011, Danny invested his savings among four mutual funds as follows: 25% in bonds fund, 20% in Canadian
equity fund, 40% in US equity fund, and the rest in money markets. During the past year, the rates of return on
the individual funds were 7%, 3%, 9%, and - 1%, respectively. What was the overall return rate on his portfolio?
Answer: Contributing rate of return from bonds fund = 25% × 7% = 1.75%
Contributing rate of return from Canadian equity fund = 20% × 3% = 0.6%
Contributing rate of return from US equity fund = 40% × 9% = 3.6%
Contributing rate of return from money market = (100% - 25% - 20% - 40%) × (-1%)
= 15% × (- 1%) = -0.15%
Overall return rate on portfolio = 1.75% + 0.6% + 3.6% - 0.5% = 5.8%
102) In the first term, Sam's courses and grades were as follows:
Course Credit Grade Point Value
English 2 2.7
French 2 3.0
Math 3 4.0
Physics 3 4.0
Chemistry 3 3.7
Social Science 1 3.3
Arts 1 2.0
Calculate Sam's Grade Point Average (GPA).
Answer:
Course Credits GPV Credits × GPV
English 2 2.7 5.4
French 2 3.0 6.0
Math 3 4.0 12.0
Physics 3 4.0 12.0
Chemistry 3 3.7 11.1
Social Science 1 3.3 3.3
Arts 1 2.0 2.0
Total 15 51.8
Grade Point Average =
52
15
= 3.45
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
103) Kim invested $7500 in a business for 3 months. She withdrew $2500 at the start of the fourth month and kept the
rest of the money in the savings account for the remaining 9 months in the year. What is Kim's average monthly
investment balance for the year?
A) $5625 B) $5000 C) $833 D) $3750 E) $1042
Answer: A
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
104) Certify Auto Repair (CAR) files GST returns annually. In 2012, CAR billed its customers $195 432 for labour, $24
732 for parts, and then added the GST. During this year, CAR paid $19 785 for parts, $36 000 for rent, $9767 for
utilities, and $21 873 for shop repairs, plus the GST on these goods and services. What GST must be remitted (or
refunded by the CRA ) for the year 2012?
Answer: Total Revenue = 195432 + 24732 = $220 164
Total Costs = 19785 + 36000 + 9767 + 21873 = $87 425
Net Revenue = 220164 - 87425 = $132 739
GST remitted = $6636.95
105) Samir plans to sell his 2400 sq. ft. bungalow in Whitby for $389 000 and buy a similar- sized house in Oshawa