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Math 141 Exam 2 Fall 20171.Merrie borrowed $1000 from her parents, agreeing to pay them back when she graduated from college in five years. If she paid interest compounded quarterly at 5%, how much would she owe at the end of the five years? A)$1050 B)$1282 C)$1503 D)$1581 Ans:B2.What is the APY for 9.6% compounded daily? A)9.6% B)10.1% C)12.2% D)13.0% Ans:B3.Suppose that you have $2000 on deposit at your bank at an annual rate of 2.34%. If the bank compounds continuously, what is the balance of your account after two years? A)$2072.98 B)$2077.50 C)$2081.59 D)$2095.82 Ans:D4.The Martin family has decided to save up for a new swimming pool. They want to save $14,000 in four years. They find a savings account for which interest was compounded monthly at 7.6%. How much will they have to deposit each month to meet this goal? A)$250.49 B)$308.33 C)$517.25 D)$612.11 Ans:A5.This table describes the share prices of the fictional mutual funds ABC and XYZ:FundJan 1stSept 1stABC$29$43XYZ$37$25Suppose that you invest $100 in ABC and $200 in XYZ on Jan 1st. What is your investment worth on Sept 1st?A.$103B.$363.44C.$283.41D. $302Answer: C6.Five years after paying $10,000 for some shares of a growth stock, you sell the shares for $21,800. Compute the annual return to the nearest percent.A.12%B.16%C.44%D.118% Answer: B7.Your friend tells you that he bought a $1000 Treasury bond for $1100 for which he gets a 4% annual return on investment. How was the coupon rate of the bond?A.4%B.4.4%C.10.1%D.14%B 8.John bought a house in 1947 for $19,000. If the 1947 CPI is 22.3 and the 2014 CPI is 236.7, how much would the house be worth in 2014 dollars? A)$182,640B)$201,673 C)$238,501 D)$253,054 Ans:B9.Pat invested in her employer’s stock program in 1981. The annual yield for her investment was 6.5%, but the inflation rate was 7.8%. What was the real growth rate of this investment? A)?1.21% B)?2.09% C)?3.30% D)?4.41% Ans:A10.Which of these savings rates is most favorable? A)5% compounded annuallyB)5% compounded semi-annuallyC)5% compounded quarterlyD)5% compounded monthlyAns:D11.If the current inflation rate of 3% remains constant over the next 10 years, what will the relative purchasing power of a dollar be in 10 years?A)$0.70B)$0.74C)$0.79D)0.80Ans:B12.You can afford monthly payments of $450, and you find a car dealer offering a 2.6% annual rate compounded monthly on a 4-year loan. Rounded to the nearest $100, what is the most expensive car you can afford?A)$18,700B)$18,900 C)$20,500 D)$21,600 Ans:C13.Suppose you are married filing jointly with two dependent children, and you had a taxable income of $88,600 in 2016. Assuming you are not entitled to a tax credit for either child, how much income tax did you pay?A.$9,680.50B.$13,290.50C.$13,692.50D.$22,150.50 Ans: C14.Given the set of data below, find the standard deviation.25, 16, 50, 19, 42, 37 A)6.07 B)13.58 C)184.3 D)921.5 Ans:B15.Which of the following statements about measures of the center of a distribution of data is true? A)Neither the mean nor the median is strongly affected by an outlier in the data. B)The mean is strongly affected by an outlier in the data, but the median is not. C)The median is strongly affected by an outlier in the data, but the mean is not. D)Both the mean and the median are strongly affected by an outlier in the data. Ans:B16.Given the histogram below for a set of data, which statement is true?A)Either the mean or the median would describe the center of the data well. B)The mean would be a better measure of the center of the data than the median. C)The median would be a better measure of the center of the data than the mean. D)Neither the mean nor the median would be a good measure of the center of the data. Ans:C17.The shelf life of a battery produced by one major company is known to be normally distributed, with a mean life of 3.5 years and a standard deviation of 0.75 years. What is the upper quartile of battery shelf life? A)4.00 years B)4.25 years C)4.17 years D)5.25 years Ans: A18.The annual income of residents in a certain county is normally distributed, with a mean of $42,000 and a standard deviation of $10,000. What is the probability that a randomly chosen resident has income over $52,000? A)16% B)32% C)50% D)68% Ans:A19.The slope of the least-squares regression line is:A)the correlation between the variables.B)the same sign as the correlation between the variables.C)the opposite of the correlation between the variables.D)the opposite sign of the correlation between the variables.Ans:BUse the following data set to answer the next two questions.Length of commute in miles (x)21083012701520Time of commute in minutes (y)52520452580303520.What is the correlation between the variables?A)B)0.11C)0.95D) 0.98Ans:D21.According to the regression equation, what is the expected length in minutes of a 25-mile commute?A)30B)37C)42D) 50Ans:B ................
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