Ski ’n Cycle purchased Elan 200 skis for $492 per pair and priced them to give a 40% rate of markup on selling price. When this model was discontinued, the store marked down its remaining stock by 30%. What was the sale price after the markdown?
> Mayfair Fashions has a $90,000 line of credit from the Bank of Montreal. Interest at prime plus 2% is deducted from Mayfair’s chequing account on the 24th of each month. Mayfair initially drew down $40,000 on March 8 and another $15,000 on April 2. On Ju
> Ms. Wadeson obtained a $15,000 demand loan from TD Canada Trust on May 23 to purchase a car. The interest rate on the loan was prime plus 2%. The loan required payments of $700 on the 15th of each month, beginning June 15. The prime rate was 4.5% at the
> George borrowed $4000 on demand from CIBC on January 28 for an RRSP contribution. Because he used the loan proceeds to purchase CIBC’s mutual funds for his RRSP, the interest rate on the loan was set at the bank’s prime rate. George agreed to make monthl
> Ruxandra’s Canada Student Loans totalled $7200 by the time she finished Conestoga College in April. The accrued interest at prime plus 2.5% for the grace period was converted to principal on October 31. She chose the floating interest rate option and beg
> An assignable loan contract executed 3 months ago requires two payments of $3200 plus interest at 9% from the date of the contract, to be paid 4 and 8 months after the contract date. The payee is offering to sell the contract to a finance company in orde
> A conditional sale contract requires two payments three and six months after the date of the contract. Each payment consists of $1900 principal plus interest at 12.5% on $1900 from the date of the contract. One month into the contract, what price would a
> A $25,000, 91-day Province of Newfoundland Treasury bill was originally purchased at a price that would yield the investor a 5.438% rate of return if the T-bill is held until maturity. Thirty four days later, the investor sold the T-bill through his brok
> Rearrange S = P(1 + rt), to isolate t on the left side.
> Calculate the price of a $50,000, 91-day Province of Nova Scotia Treasury bill on its issue date when the market rate of return was 1.273%.
> What amount on January 23 is equivalent to $1000 on the preceding August 18 if money can earn 6 1 2 %?
> Peter and Reesa can book their Horizon Holiday package at the early-booking price of $3900, or wait four months and pay the full price of $3995. 1. Which option should they select if money can earn a 5.25% rate of return? 2. At what interest rate would t
> Sheldrick Contracting owes Western Equipment $60,000 payable on June 14. In late April, Sheldrick has surplus cash and wants to settle its debt to Western Equipment, if Western will agree to a fair reduction reflecting the current 3.6% interest rate that
> Jacques received the proceeds from an inheritance on March 15. He wants to set aside, in a term deposit on March 16, an amount sufficient to provide a $45,000 down payment for the purchase of a home on November 1. If the current interest rate on 181-day
> Petra has forgotten the rate of simple interest she earned on a 120-day term deposit at Scotiabank. At the end of the 120 days, she received interest of $327.95 on her $21,000 deposit. What rate of simple interest was her deposit earning?
> Marta borrowed $1750 from Jasper on November 15, 2019, and agreed to repay the debt with simple interest at the rate of 7.4% on June 3, 2020. How much interest was owed on June 3?
> A loan of $3300 at 6 1 4 % simple interest was made on March 27. On what date was it repaid if the interest cost was $138.44?
> If $3702.40 earned $212.45 interest from September 17, 2018, to March 11, 2019, what rate of interest was earned?
> Nine months ago, Muriel agreed to pay Aisha $1200 and $800 on dates 6 and 12 months, respectively, from the date of the agreement. With each payment Muriel agreed to pay interest at the rate of 8 1 2 % from the date of the agreement. Muriel failed to mak
> Use P V = P M T i , to calculate i if PMT = $900 and PV = $150,000. (There are several instances in our formulas where a two- or three-letter symbol is used for a variable. This is usually done to make the symbol more suggestive of the quantity it repres
> A $9000 loan is to be repaid in three equal payments occurring 60, 180, and 300 days, respectively, after the date of the loan. Calculate the size of these payments if the interest rate on the loan is 7 1 4 % . Use the loan date as the focal date.
> Mr. and Mrs. Parson are considering two offers to purchase their summer cottage. Offer A is for $200,000 consisting of an immediate $40,000 down payment with the $160,000 balance payable one year later. Offer B is for $196,500 made up of a $30,000 down p
> If money earns 7.5%, calculate and compare the economic value today of the following payment streams: Stream 1: Payments of $1800 made 150 days ago and $2800 made 90 days ago. Stream 2: Payments of $1600 due 30 days from now, $1200 due 75 days from now,
> Payments of $1000 scheduled to be paid five months ago and $7500 to be paid four months from now are to be replaced with a single payment two months from now. What payment two months from now is equivalent to the scheduled payments if money can earn 2 1
> Umberto borrowed $7500 from Delores on November 7, 2020. When Umberto repaid the loan, Delores charged him $190.02 interest. If the rate of simple interest on the loan was 6 3 4 % , on what date did Umberto repay the loan?
> Evelyn put $15,000 into a 90-day term deposit at Laurentian Bank that paid a simple interest rate of 3.2%. When the term deposit matured, she invested the entire amount of the principal and interest from the first term deposit into a new 90-day term depo
> Thad is planning to buy a rototiller next spring at an expected price of $579. In the current sale flyer from Evergreen Lawn and Garden, the model he wants is advertised at $499.95 in a Fall Clearance Special. 1. If money can earn 4%, what is the economi
> Two payments of $5000 each are to be received four and eight months from now. 1. What is the combined equivalent value of the two payments today if money can earn 6%? 2. If the rate of interest money can earn is 4%, what is the payments’ combined equival
> Three payments are scheduled as follows: $1200 is due today, $900 is due in five months, and $1500 is due in eight months. The three payments are to be replaced by a single equivalent payment due 10 months from now. What should the payment be if money is
> What amount invested at 4 1 2 % on November 19, 2019, had a maturity value of $10,000 on March 3, 2020?
> Rearrange S = P(1 + rt), to isolate r on the left side.
> The monthly fixed costs of operating a 30-unit motel are $28,000. The price per unit per night for next year is set at $110. Costs arising from rentals on a per-unit per-day basis are $12 for maid service, $6 for supplies and laundry, and $6 for heat and
> To raise funds for its community activities, a Lions Club chapter is negotiating with International Carnivals to bring its midway rides and games to town for a three-day opening. The event will be held on part of the parking lot of a local shopping centr
> Cambridge Manufacturing is evaluating the introduction of a new product that would have a unit selling price of $100. The total annual fixed costs are estimated to be $200,000, and the unit variable costs are projected at $60. Forecast sales volume for t
> Norwood Industries has annual fixed costs of $1.8 million. Unit variable costs are currently 55% of the unit selling price. 1. What annual revenue is required to break even? 2. What revenue would result in a loss of $100,000 in a year? 3. What annual rev
> During an economic slowdown, an automobile plant lost $12,000,000 on the production and sale of 9000 cars. Total revenue for the year was $270,000,000. If the break-even volume for the plant is 10,000 cars per year, calculate: 1. The plant’s total fixed
> Durable Toys Inc. wants to calculate from recent production data the monthly fixed costs and unit variable costs on its Mountain Trike product line. In the most recent month, it produced 530 trikes at a total cost of $24,190. In the previous month, it pr
> Fisher Publishing Inc. is doing a financial feasibility analysis for a new book. Editing and preproduction costs are estimated at $45,000. The printing costs are a flat $7000 for setup plus $8.00 per book. The author’s royalty is 8% of the publisher’s se
> The Armour Company had the following revenue and costs in the most recently completed fiscal year: Total revenue ………………………. $10,000,000 Total fixed costs .…………………. $2,000,000 Total variable costs ……………… $6,000,000 Total units produced and sold .. 1,000,0
> Memex Corp. manufactures memory expansion boards for microcomputers. The average selling price of its finished product is $180 per unit. The average variable cost per unit is $110. Memex incurs fixed costs of $1,260,000 per year. 1. What is the break-eve
> An invoice shows a net price of $199.16 after trade discounts of 22%, 7%, and 5% are deducted. 1. What was the list price of the goods? 2. What single trade discount would be equivalent to the discount series?
> Rearrange NI = (CM)X – FC, to isolate X on the left side.
> At its current price of $1.10 per share, the price of Apex Resources stock is down 78% from its price one year ago. What was that price?
> A merchant pays a 2.9% fee to the RBC Royal Bank on all Visa sales. 1. What amount will he pay on sales of $28,476 for a month? 2. What were his gross sales for a month in which the bank charged fees totalling $981.71?
> Chicken Little Farms gives convenience stores a trade discount of 25% on eggs listed at $43.00 per case. What trade discount will Sunnyside Farms have to give on its list price of $44.50 per case to match Chicken Little’s price to convenience stores?
> Mr. and Mrs. Ogrodnik want to list their house at a price that will net them a minimum of $320,000 after a real estate commission of 5.5% of the selling price. Rounded to the nearest $100, what is the lowest offer they could accept on their home?
> The net price of an item after a discount of 22% is $155.61. What is the amount of the discount?
> A 28% trade discount on a game console represents a discount of $136.92 from the suggested retail price. What is the net price to the buyer?
> A snow blower retails for $489. The dealer’s overhead is 20% of cost, and normal operating profit is 16 2 3 % of cost. 1. What is the largest amount of markdown that will allow the dealer to break even? 2. What rate of markdown will price the snow blower
> A pharmacy marked up its sunscreen to provide for overhead expenses of 40% of cost and a profit of 45% of cost. At the end of the summer, what rate of markdown can the pharmacy apply to the remaining inventory of sunscreen and still break even on sales a
> Nelson Hardware ordered a shipment of gas barbecues at a suggested retail price of $459 less trade discounts of 25% and 10%. The manager intends to sell the barbecues at the suggested retail price. If overhead expenses are 20% of the selling price: 1. Wh
> Rearrange NI = (CM)X – FC, to isolate CM on the left side.
> To manufacture a new product, a company must immediately invest $375,000 in new equipment. At the end of Years 3 and 5, there will have to be a major overhaul of the equipment at a cost of $50,000 on each occasion. The new product is expected to increase
> Sunrise Building Supply obtains 4-ft by 8-ft sheets of wallboard from Canadian Gypsum at $30 per sheet less 30% and 10%. The price is to be set to cover Sunrise’s overhead of 20% of the selling price and to provide an operating profit of 18% of the selli
> Central Ski and Cycle purchased ski boots for $360 per pair less 33 1 3 % and 10%. The regular rate of markup on selling price of the boots is 40%. The store’s overhead is 22% of the selling price. During a January clearance sale, the price was reduced t
> The Pro Shop at Sunny Lake Golf and Country Club prices its golf club sets to allow for overhead of 33 1 3 % of cost and profit of 20% of cost. 1. What is the regular selling price as a percentage of cost? 2. What discount rate can the Pro Shop offer to
> A uranium mining town reported population declines of 3.2%, 5.2%, and 4.7% for the three successive five-year periods 1985–89, 1990–94, and 1995–99. If the population at the end of 1999 was 9320: 1. How many people lived in the town at the beginning of 1
> A trade discount of 22.5% from the suggested selling price for a line of personal computers translates to a $337.05 discount. What net price will a retailer pay?
> Bosley’s Pet Foods buys dog kibble for $19.50 per bag, less 40%. The store’s overhead is 33 1 3 % of the selling price, and the desired profit is 10% of the selling price. 1. At what price per bag should the dog food be sold? 2. At this price, what is th
> What total amount must be paid on May 4 to settle invoices dated April 20 for $650, April 24 for $790, and April 30 for $465, all with terms 1 1 2 /10, n/30?
> What is the cost of an item that sells for $87.49 if: 1. The rate of markup on cost is 30%? 2. The rate of markup on selling price is 30%?
> Omega Restaurant received an invoice dated July 22 from Industrial Kitchen Equipment for $3691, with terms 2/10, 1/20, n/45. Omega made payments of $1100 on August 1, $900 on August 10, and $800 on August 31. What amount was still owed on September 1?
> If a grocery store’s rate of markup on the selling price of tomatoes is 55%, what is the rate of markup on the cost of tomatoes?
> Rearrange N = L(1 – d), to isolate d on the left side.
> The evening news reports that the S&P/TSX Index dropped 0.9% on the day to close at 13,123 points. How many points did the index fall?
> In three successive years the price of the common shares of Bedrock Resources Ltd. fell 40%, 60%, and 70%, ending the third year at 50 cents. 1. What was the share price at the beginning of the three-year skid? 2. How much (in dollars and cents) did the
> A payment of $500 on an invoice for $887 reduced the balance owed to $378.09. What cash discount rate was allowed on the $500 payment?
> In addition to the regular trade discount of 25% and a volume purchase discount of 8 1 3 % from the manufacturer, Appliance Warehouse is offered a further 5% discount for orders placed in January. 1. What is the net price after all three trade discounts
> Custom Kitchens received an invoice dated November 17 from Idea Cabinets Ltd. for $7260 with terms 3/15, 1 1 2 /30, n/60. If Custom Kitchens made a payment of $4000 on December 2, what further payment on December 16 will settle the account?
> Specialty Builders Supply has two sources for the same power saw. Source A sells the saw at $196.00 less 20%, and Source B offers it at $186.60 less 16 2 3 % . Which source is less expensive, and by how much?
> If Indonesian rupiah 1.00 = C$0.0001121, how many rupiah can be purchased with C$1500?
> The new University Hospital is scheduled to have 436 beds. The ratio of nurses to beds to nurses’ aides for staffing the hospital is 4 : 9 : 2. How many nurses and aides will need to be hired?
> Three years ago, when the CPI was at 115.8, the members of a union were earning $22.25 per hour. Now, with the current CPI at 120.2, they are negotiating for a new hourly rate that will restore their former purchasing power. What hourly rate are they see
> A test-marketing of a newly released Blu-ray disc in a representative Canadian city, with a population of 120,000, resulted in sales of 543 units in a three-month period. If the Blu-ray disc sells at the same rate in the rest of the country, where 21,000
> Rearrange P V = P M T i , to isolate i on the left side.
> Milan, Katka, and Shoshanna started their partnership with a total investment of $135,000 contributed in the ratio of 3 : 4 : 2. If each partner contributes another $10,000, what will be the ratio of their total contributions?
> Mark, Ben, and Tanya own 4250, 2550, and 5950 shares, respectively, of MBT Inc. What is the ratio of their shareholdings?
> Solve the following proportions to four-figure accuracy. 1. 65 : 43 = 27.3 : x 2. 1410 : 2330 : 870 = a : 550 : b
> The exchange rate between Currencies X and Y is currently Y0.05614 = X1.00. If X weakens by 1.5% relative to Y, what will be the new values for the exchange rates per unit of X and per unit of Y?
> A steel company in Hamilton can purchase Alberta coal at C$105 per metric tonne (1000 kg) or West Virginia coal at US$95 per ton (2000 lb) (1 kg = 2.205 lb). How much cheaper in C$ per metric tonne is the less expensive source if US$0.805 = C$1.00?
> A partnership agreement provides that half of the annual profit be distributed in proportion to each partner’s investment in the partnership, and that the other half be distributed in proportion to the total number of hours that each partner worked in th
> Solve the following proportions for the unknown quantities. 1. t : 26 : 10 = 24 : 39 : s 2. x : 3600 : y = 48 : 40 : 105
> The exchange rate between the US$ and the C$ declines from US$1.3358 to US$1.3112 per C$. What will be the change in the C$ price to an importer of a US$2000 item?
> The CPI stood at 96.4, 98.6, 101.2, 103.3, 105.7, and 108.9 on the same date in successive years. 1. What was the inflation rate: (i) in the fourth one-year interval? (ii) in the fifth one-year interval? 2. What amount was required at the end in order to
> Mr. Nolan’s will specifies that the proceeds from his estate be divided among his wife, son, and stepson in the ratio of 7 5 : 1 : 5 7 , respectively. Rounded to the nearest dollar, how much will each receive from the distribution of his $331,000 estate?
> Rearrange I = Prt, to isolate t on the left side.
> Wendy, Simone, and Leif share the costs of their coffee fund in the ratio 3 2 : 2 3 : 5 3 . How will costs of $50 be allocated among them?
> A profit-sharing bonus was divided among four employees—Ms. L, Mr. M, Ms. N, and Mr. P—in the ratio of 1.5 : 1 : 0.75 : 0.5, respectively. If Ms. N received $2000, how much did each of the others receive?
> How should common area costs totalling $28,575 be allocated among commercial tenants A, B, C, and D if the costs are prorated based on leased areas of 1260, 3800, 1550, and 2930 square feet, respectively?
> Before Mr. and Mrs. Percival left for Great Britain, they purchased British pounds at an exchange rate of C$1.5947 = £1.00. When they returned to Canada eight weeks later they converted their remaining £242 back to Canadian currency at the rate of C$1.63
> A provincial government allocates 29% of its budget to education, 31% to health care, and 21% to social services. If the dollar amount budgeted for education is $13.7 billion, how much is budgeted for health care and for social services? Round to the ne
> If C$1.00 rises from ¥87.94 to ¥89.78, what will be the change in the C$ price to an importer of a ¥2,965,000 car?
> For the last five years the sales of Departments D, E, and F have maintained a relatively stable ratio of 13 : 17 : 21. Department E is forecasting sales of $478,000 for next year. Based on the past sales ratio, what sales would be expected for Departmen
> Express each of the following ratios in its lowest terms. 1. 0.18 : 0.60 : 0.45 2. 9 8 : 3 4 : 3 2 3. 1 6 : 1 3 : 1 9 4. 6 1 4 : 5 : 8 3 4
> In a downtown Edmonton office building, 42% of its employees smoke. If 11% of the smokers join a stop-smoking group and the group has 17 members, how many employees are in the office building? Round your answer to the nearest whole person.
> Solve each of the following: 1. What amount is 17.5% more than $29.43? 2. What amount reduced by 80% leaves $100? 3. What amount reduced by 15% equals $100? 4. What is $47.50 after an increase of 320%? 5. What amount when decreased by 62% equals $213.56?
> Use P V = P M T [ 1 − ( 1 + i ) − n i ] , to obtain PMT if PV = $6595.20, n = 20, and i = 0.06.
> How many dollars is 350% of 62¢?
> 450 grams is what percentage of 2 kg?
> $150 is 200% of what amount?
> Fifteen minutes is what percentage of two hours?
