If $10,000 is invested for 5 years at annual simple interest rate of 8.5%, what will be the future value of the investment?

1.   ?    $435,000
2.   ?    $14,250
3.   ?    $14,240
4.   ?    $14,260

If $9,000 is borrowed for 3 months at a simple interest rate of 15.8% per year, what is the future value of the loan at the end of the 3 months?

1.   ?    $435,600
2.   ?    $35,550
3.   ?    $13,266
4.   ?    $9,355.50

If $6,000 is invested for 9 years at 10% interest rate compounded annually, how much interest is earned?

1.   ?    $8,147.70
2.   ?    $14,147.70
3.   ?    $8,150.70
4.   ?    $8,148.70

What amount must be invested now in order to have $15,000 after 5 years if money is worth 6% compounded monthly?

1.   ?    $11,120.58
2.   ?    $454.72
3.   ?    $11,208.87
4.   ?    $11,110.58

What amount must be invested at 8.5% compounded continuously, so that it will be worth $32,000 after 12 years?

1.   ?    $12,339.04
2.   ?    $11,639.04
3.   ?    $11,539.04
4.   ?    $11,439.04

Suppose that a firm manufactures radios and sells them for $60 each. The manufacturer’s fixed costs are $400,000 per month and the variable costs are $20 per radio. Write the profit function.

1.   ?    P(x) =-40x+400,000
2.   ?    P(x) =40x+400,000
3.   ?    P(x) =40x-400,000
4.   ?    P(x) = 80x-400,000

A manufacturer sells a product for $15 per unit. The manufacturer’s fixed costs are $2,000 per month, and the variable costs are $5 per unit. How many units must the manufacturer produce each month to break even?

1.   ?    205 units
2.   ?    210 units
3.   ?    100 units
4.   ?    200 units

If the supply function for a commodity is given by P=2q +200 and the demand function is given by P= 40q+5000, find the point of equilibrium.

1.   ?    (60 , 7400)
2.   ?    (40 , 3400)
3.   ?    (60 , 3400)
4.   ?    (60 , 2600)