Practice Exam Answers

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Which variable is numerical?

A
apartment floor level (ground/upper/penthouse)
B
type of payment method (cash/check/credit card)
C
monthly water usage (gallons)
D
heating source (natural gas/electricity/oil)
26

Choose the method of pay that would result in the most earnings for one month on sales of 73 dollars comma 620

A
Straight commission of 6 percent on all sales.
B
Monthly salary of 3 dollars comma 000 plus 2 percent commission on all sales.
C
Graduated commission of 4 percent on the first 50 dollars comma 000 in sales and 9 percent on anything over that.
D
Graduated commission of 5 percent on the first 35 dollars comma 000 in sales and 7 percent on anything over that.
30

Julia takes a car loan of $5,000 at a simple interest rate of 6% per annum. If she plans to pay back the loan in 3 years, what will be the total interest and the amount she will owe at the end of 3 years?

A
Interest: $300, Total Owed: $4,700
B
Interest: $300, Total Owed: $5,300
C
Interest: $900, Total Owed: $4,100
D
Interest: $900, Total Owed: $5,900
31

Which potential advantage applies to leasing a car but not to buying it?

A
the ability to sell the car for profit at the end of the lease
B
customizing the car with any modifications desired
C
having ownership of the car after the lease ends
D
typically lower monthly payments and a warranty throughout the lease term
36

Which component is a primary part of a mortgage?

A
car insurance premium
B
electricity bill
C
monthly grocery expenses
D
principal amount
37

Which disadvantage must Emma consider if choosing to finance the car?

A
Increased cash reserves.
B
Quick payoff of the vehicle.
C
Lower initial purchase cost.
D
Potential for high cumulative interest costs after the promotional period.
38

After entering values for D2, D3, C3, and C4, how can you determine the values for B2, B3, C2, and B4?

A
Sum D2 and D3 and use this to calculate B2 and B3.
B
Use the total in D2 and D3 to back-calculate B2 and B3, then sum B2 and B3 for B4.
C
Calculate C4 minus C3 to find C2, then use the total in D2 and D3 to back-calculate B2 and B3, and finally sum B2 and B3 for B4.
D
Directly enter the remaining values based on known percentages.
40

What is the least observed driver behavior in rural areas as shown in the segmented bar graph?

A
wearing a seat belt
B
eating while driving
C
speed compliance
D
using a phone

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