Question

Please answer the following

QUESTION 1

1. If a 1.5% cash discount is allowed for early payment, the amount of the discount on a $2,000 invoice would be:

   	A.	$1,970
   	B.	$300
   	C.	$30
   	D.	$1.50

20 points   

QUESTION 2

1. If A = L + S, what is S if A is $54,000 and L is $23,000?

   	A.	$21,000
   	B.	$31,000
   	C.	$77,000
   	D.	$27,000

20 points   

QUESTION 3

1. Ed gets paid $4,500 per month salary plus 4% commission on all sales greater than $50,000.  If he sold $72,000 last month, what was his total gross pay?

   	A.	$4,500
   	B.	$5,380
   	C.	$7,380
   	D.	$2,880

20 points   

QUESTION 4

1. Real estate taxes are based on the assessed value of the property. Calculate the tax due on a house with an assessed value of $160,000. The tax rate is 6.255% of the assessed value.

   	A.	$10,008
   	B.	$9,600
   	C.	$18,000
   	D.	$10,800

20 points   

QUESTION 5

1. The simple interest formula for calculating interest for less than one year is: Interest = Principal x Rate x Term/360. Solve for the Principal if the Interest is $120; Rate is 3%; Term is 60 days.

   	A.	$2,160
   	B.	$21,600
   	C.	$12,000
   	D.	$24,000

Answer 1

1. Option C Discount on invoice amount = 2000*1.5% = 30

2. Option B S = A- L = 54,000-23,000 = 31,000

3. Option B Gross pay = 4,500 + (72000-50000)*4% = 5380

4. Option A Tax due = 160,000*6.255% = 10,008

5. Option D Principal = I/RT = 120/3%*60/360 =24,000