4.1-4.7 Test Review - fin algebra PDF

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fin algebra...

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21-22 Financial Algebra

Name ________________________

4.1-4.3 Test Review

Date ______________ Per _______

1. Yanna works for a hospital that has its own credit union called Health Central Credit Union (HCCU). It offers banking services like those of a bank. Observe the following tables of services and fees:

What would be Yanna’s total monthly fees for a checking account with direct paycheck deposit, no overdrafts, no 2nd copies of statements, 3 ATM usages in the hospital, and 5 ATM usages outside the hospital?

2. Consider Jane’s incomplete deposit slip: Description Amount ($) Check 2702 43 25 Check 2703 23 89 Cash 50 75 Subtotal ?? ?? ?? ?? Less Cash Received Total 42 71 How much cash did Jane receive?

3. Vicky’s bank charges her a $2.25 service fee every time she uses an out-of-network ATM. If Vicky uses an out-of-network ATM twice, withdrawing $20 each time, how much money will be coming out of her account?

4. Kurt has $331.36 in his account before making any transactions. Over the course of a week, Kurt makes the following transactions: Transaction Debit ($) Credit ($) Car Payment 186.47 Groceries 66.42 Paycheck 279.62 Tax Return 95.02 Insurance 160.00 At the end of the week, how much money does Kurt have in his account?

5. You have decided to both open a savings account and to purchase a car. You would like a car loan with a low interest rate and a savings account with the highest interest rate. From the banks listed below, determine with which bank you should apply for your car loan and which bank you should open a savings account. Car Loan Rates Bank A 4.5% Bank B 3.5% Bank C 2.5%

Savings Rates Bank A 0.1% Bank B 0.13% Bank C 0.15%

6. When your bank tells you that you need a minimum balance in your savings account, what does that mean?

7. Roberta’s monthly bank statement says that she has a balance of $386.29, but Roberta’s check register says that her balance is $370.77. Which of the following are still outstanding? I. II. III. IV.

A $78.17 check to the electric company A $16.15 deposit from Roberta’s roommate A $22.67 check to the grocery store $62.65 deposit from Roberta’s tax return

8. Ruby wants to start her own business taking photographs. She already has her own camera, but needs to purchase lights, a photo printer, and photo paper. If the cost of the photo printer is $251.99, the cost of the lighting is $150.00, and the cost for 100 sheets of photo paper is $30.98, determine how much of her savings will be used to start her company, give that she has $840.32 in savings.

9. Mark invests $4,700 in an online savings account which gives 4.2% simple annual interest. He also invests $4,000 in a savings account at his local bank which gives 6.9% simple annual interest. After fifteen years, which account will have earned more interest, and how much more interest will it have earned, to the nearest dollar?

10. Rate the following bank accounts from most to least liquid: CD, savings account, checking account, money market account.

11. If Sarah invests $5,300 at a 4.5% simple annual interest rate, approximately how many years will it take for her to have over $7,500?

12. Sam has an account that pays 5.5% simple interest per year and wants to accumulate $2,500 in interest from it over the next 8 years. How much money should Sam invest in this account to meet his goal? Round your answer to the nearest whole dollar.

13. If you invest the same amount of money into different accounts earning the same interest rate, which compounding would give you the greatest total value at the end of one year? a. Compounded monthly b. Compounded daily c. Compounded annually d. Compounded quarterly

14. A principal of $5,570 is placed in an account that earns 5.5% interest. If the interest is compounded monthly, how much money will be in the account at the end of 5 years (to the nearest dollar)?...