BUSINESS AND FINANCE BASICS 1 Multiple Choice Question
1. What is the effective rate of a $30,000 non-interest-bearing simple discount 5%, 60-day note? A. 5.14% B. 5% C. 6.0% D. 5.04% 2. (1 + markup percent on cost) × cost equals the A. cost at wholesale. B. selling price. C. cost at retail. D. markup. 3. Burton Bush wants to retire in Arizona when he is 80 years of age. Burton, who is now 55, believes he will need $400,000 to retire comfortably. To date, he has set aside no retirement money. If he gets an interest rate of 6% compounded annually, he will have to invest today. Using the tables in the Business Math Handbook that accompanies the course textbook, determine how much he must invest. A. $92,300 B. $93,200 C. $69,900 D. $96,500 E. 4. When markups are based on the selling price, the selling price is A. 100%. B. 100% + cost percent. C. cost – markup. D. the portion. 5. A local college bookstore paid a net price of $12,500 for textbooks for the coming semester. The publisher offered a trade discount of 20%. The publisher's o...