Money, Interest and Everyday Quantities Test

Answer: C

Correct answer: $1.24. Unit price is total cost divided by the number of units:

per battery.

• A: Multiplying the price by 8 gives the cost of 8 packages, not one battery.
• B: This divides the number of batteries by the price, which flips the unit price.
• C (correct): Dividing the $9.92 price by the 8 batteries gives $1.24 for each one.
• D: Subtracting 8 from the price does not split the cost among the batteries.

Answer: A

Correct answer: $6.90. 10% of $46.00 is $4.60, and 5% is half of that, $2.30. Adding them gives a 15% tip of $6.90.

• A (correct): Ten percent ($4.60) plus five percent ($2.30) gives the 15% tip of $6.90.
• B: This is only 10% of the bill; the extra 5% was left out.
• C: This is only 5% of the bill, the smaller piece of the 15% tip.
• D: This is the bill plus the tip, but the question asks for the tip alone.

Answer: C

Correct answer: $595.20. Gross pay is rate times hours:

• A: The decimal point is misplaced; 18.60 times 32 is about 600, not 60.
• B: Adding the rate and the hours does not compute pay; they must be multiplied.
• C (correct): Multiplying the hourly rate by 32 hours gives $595.20 before deductions.
• D: This pays for only 30 hours instead of the 32 hours worked.

Answer: B

Correct answer: $940. Commission is the percent times sales:

• A: Using 0.004 for 4% makes the commission ten times too small.
• B (correct): Four percent written as 0.04 times $23,500 equals $940.
• C: This is the sales amount minus the commission, not the commission itself.
• D: Using 0.4 for 4% makes the commission ten times too large.

Answer: D

Correct answer: $324. Use

• A: This is the account balance after adding the interest to the deposit, not the interest alone.
• B: Using 0.6 instead of 0.06 for 6% makes the interest ten times too large.
• C: This is the interest for only one year; it must be multiplied by 3 years.
• D (correct): Principal times rate times time gives 1,800 × 0.06 × 3 = $324.

Answer: C

Correct answer: $97.20. Sale price:

With tax:

• A: This is the sale price before the 8% tax is added.
• B: This nets the percents to 17% off, or figures the tax on the original price; tax applies to the $90 sale price.
• C (correct): The discount gives $90, and multiplying by 1.08 adds 8% tax for $97.20.
• D: This adds tax to the full price and skips the 25% discount.

Answer: D

Correct answer: $902.50. Regular pay:

Overtime rate:

Total:

• A: This pays all 45 hours at the overtime rate, but only the 5 extra hours earn it.
• B: This adds only the extra half-rate ($9.50) for the overtime hours instead of the full $28.50.
• C: This pays all 45 hours at the regular rate and ignores overtime.
• D (correct): Forty hours at $19 plus five overtime hours at $28.50 totals $902.50.

Answer: C

Correct answer: $108. The markup is

so the selling price is

or 1.35 × $80 in one step.

• A: Subtracting the markup treats it like a discount, but markup raises the price.
• B: Adding 35 dollars treats the percent as a dollar amount.
• C (correct): The 35% markup on the $80 cost is $28, and adding it gives $108.
• D: This is only the markup amount; it still has to be added to the cost.

Answer: D

Correct answer: $850. Total expenses:

Remaining:

• A: This leaves out the $315 car payment when totaling the expenses.
• B: This leaves out the $205 utility bill when totaling the expenses.
• C: This is the total spent, not the amount left over.
• D (correct): The expenses add to $2,000, and $2,850 minus $2,000 leaves $850.

Answer: B

Correct answer: $189. Convert 9 months to years:

year. Interest:

• A: This is the total repaid, principal plus interest, not the interest alone.
• B (correct): Nine months is 0.75 year, and 3,600 × 0.07 × 0.75 = $189.
• C: This is a full year's interest, but the loan lasted only 9 months.
• D: This uses 9 as the number of years instead of converting months to years.

Answer: A

Correct answer: 4.5%. Solve

for r:

which is 4.5% per year.

• A (correct): Dividing the interest by principal times years, 216 ÷ 4,800, gives 0.045, or 4.5%.
• B: This divides 216 by 1,600 only, which is the total interest rate for all 3 years, not per year.
• C: The decimal 0.045 was converted to a percent incorrectly; 0.045 equals 4.5%.
• D: This multiplies by the 3 years instead of dividing by them.

Answer: D

Correct answer: $190.80. First discount:

Second discount on the reduced price:

Tax:

• A: This takes 6% off for tax instead of adding it.
• B: Combining the discounts into 30% off the original ignores that the second discount uses the reduced price.
• C: This is the price after both discounts, before the 6% tax is added.
• D (correct): Each discount applies to the current price ($200, then $180), and tax brings the total to $190.80.

Answer: B

Correct answer: $210. Cost:

Revenue:

Profit:

• A: This counts only the 50 full-price caps and ignores the $15 lost on the clearance caps.
• B (correct): Revenue of $660 minus the $450 cost of all 60 caps gives a $210 profit.
• C: This assumes all 60 caps sold at $12, ignoring the 10 clearance sales.
• D: This is the total revenue; the $450 cost must be subtracted to find profit.

Answer: A

Correct answer: $22,000. Commission earned:

Since commission is 6% of sales, sales =

• A (correct): Removing the $1,500 base leaves $1,320 of commission, and $1,320 ÷ 0.06 = $22,000.
• B: Dividing the whole $2,820 by 0.06 treats the base pay as if it were commission.
• C: Multiplying the commission by 6 instead of dividing by 0.06 gives far too little in sales.
• D: This is the commission amount, an intermediate step, not the sales total.

Answer: B

Correct answer: $12. Marked price:

Sale price:

Profit:

• A: This is the sale price, which is revenue; the $60 cost must be subtracted.
• B (correct): The marked price is $90, the sale price is $72, and $72 − $60 cost leaves $12 profit.
• C: This is the profit at the full marked price, before the 20% discount.
• D: Netting the percents to a 30% markup ignores that the 20% discount is taken from $90, not $60.

Answer: D

Correct answer: The 40-ounce bottle, by 1 cent per ounce. Divide each price by its number of ounces:

The 40-ounce bottle is cheaper by $0.01 per ounce.

• A: This picks the bottle with the lower sticker price; per ounce the smaller bottle actually costs more.
• B: The unit prices are $0.14 and $0.13, which differ by only 1 cent; 2 cents comes from a division slip.
• C: $1.84 is the difference in total prices, which says nothing about cost per ounce because the bottles hold different amounts.
• D (correct): The 24-ounce bottle costs 3.36 ÷ 24 = $0.14 per ounce and the 40-ounce bottle costs 5.20 ÷ 40 = $0.13 per ounce, a 1-cent difference.

Answer: C

Correct answer: $1,271.00. Total hours:

so 7.5 hours are overtime. Overtime rate:

Gross pay is $1,271.00.

• A: This pays all 47.5 hours at the regular $24.80 rate and leaves out the overtime premium.
• B: This pays every one of the 47.5 hours at the $37.20 overtime rate; only the 7.5 hours beyond 40 earn it.
• C (correct): The week has 47.5 hours: 40 × 24.80 = $992 regular pay plus 7.5 × 37.20 = $279 overtime pay, for $1,271.
• D: This pays the extra hours at only half the regular rate ($12.40) instead of one and a half times it ($37.20).

Answer: C

Correct answer: $16.09. Line up the decimal points and add:

Two $20 bills are $40.00, so the change is

• A: This is the total cost of the items; the question asks for the change from $40.
• B: This comes from a borrowing slip when subtracting 23.91 from 40.00.
• C (correct): The items total 14.65 + 6.89 + 2.37 = $23.91, and 40.00 − 23.91 = $16.09.
• D: This reverses the cents digits; 40.00 − 23.91 leaves 9 cents, not 91 cents.

Answer: A

Correct answer: $1,219.00. Overtime rate:

Regular pay:

Overtime pay:

Gross pay:

• A (correct): Regular pay is 40 × 26.50 = $1,060 and overtime pay is 4 × 39.75 = $159, for a total of $1,219.
• B: This pays all 44 hours at the regular rate and ignores the overtime premium.
• C: This pays all 44 hours at the overtime rate of $39.75; only the 4 extra hours earn it.
• D: This pays the 4 extra hours at only half the regular rate ($13.25) instead of 1.5 times it.

Answer: A

Correct answer: $44.80. Markup is based on cost, so multiply the cost by 1 plus the rate:

• A (correct): The markup is 0.60 × 28 = $16.80, and 28 + 16.80 = $44.80 (or 1.60 × 28).
• B: This is only the markup amount; it must be added to the $28 cost to get the selling price.
• C: This divides the cost by 0.60, which uses the wrong base; markup is a percent of cost, so multiply.
• D: This multiplies by 1.40, which is a 40% markup rather than the stated 60%.

Answer: C

Correct answer: $114.60. Apply each step to the current amount, in order.

The total cost is $114.60.

• A: This adds the two discounts into a single 45% discount; the second discount applies to the reduced price, not the original.
• B: This is the price after both discounts, but the 7% sales tax was never added.
• C (correct): 180 × 0.70 = $126, then 126 × 0.85 = $107.10, then 107.10 × 1.07 ≈ $114.60.
• D: This combines 30% + 15% − 7% into one 38% discount; each percent must be applied to the current amount in turn.

Answer: D

Correct answer: $180. Convert time to years:

year. Then

so the interest is $180.

• A: This uses 8 as the number of years; the months must be converted to years first.
• B: This is a full year of interest; 8 months is only two-thirds of a year.
• C: This treats 8 months as 0.8 year; 8 months is 8 ÷ 12 ≈ 0.67 year.
• D (correct): Eight months is 8/12 of a year, so 6,000 × 0.045 × 8/12 = $180.

Answer: C

Correct answer: $0.45. Divide the total cost by the number of bars:

per bar. Check:

• A: This swaps the digits of the correct unit price, a common slip when dividing.
• B: This divides 24 by 10.80, which gives bars per dollar, not dollars per bar.
• C (correct): Unit price is total cost divided by units: 10.80 ÷ 24 = $0.45.
• D: This is a division error; 24 × 0.43 is only $10.32.

Answer: C

Correct answer: $49.98. Sale price:

Add 5% tax:

• A: This nets the percents into one 10% discount (15% − 5%); each percent must be applied to the current amount.
• B: This is the sale price before tax; the 5% tax still has to be added.
• C (correct): The sale price is 0.85 × 56 = $47.60, and 47.60 × 1.05 = $49.98.
• D: This adds tax to the original price but never applies the 15% discount.

Answer: A

Correct answer: $1,030. Commission:

Total pay: base plus commission,

• A (correct): The commission is 0.08 × 7,250 = $580, and adding the $450 base gives $1,030.
• B: This is the commission alone; the base pay must be added to it.
• C: This uses 0.8 instead of 0.08 for 8%, giving a commission of $5,800 before adding the base.
• D: This adds the base pay to the total sales instead of to the commission earned on the sales.

Answer: B

Correct answer: $2,800. Use

and solve for P:

The deposit was $2,800.

• A: This divides by the rate alone and ignores the 3 years, so it finds the principal for one year's interest.
• B (correct): Solving I = P × r × t for P gives 378 ÷ (0.045 × 3) = 378 ÷ 0.135 = $2,800.
• C: This uses 0.45 instead of 0.045 for 4.5%, which makes the answer ten times too small.
• D: This adds the interest to the principal; the question asks for the original deposit only.

Answer: A

Correct answer: $12.48. Find 10% by moving the decimal point one place left: $6.24. Double it for 20%:

• A (correct): 20% is 0.20 × 62.40 = $12.48, or double the 10% amount of $6.24.
• B: This is only 10% of the bill; 20% is twice that amount.
• C: This is the bill plus the tip; the question asks for the tip alone.
• D: This reverses the last two digits of the correct tip.

Answer: D

Correct answer: $83. Profit is revenue minus cost. Revenue:

Cost:

Profit:

• A: This counts the cost of only the 100 bottles sold; the club paid for all 120 bottles.
• B: This assumes all 120 bottles were sold at a $0.90 gain each.
• C: This is the revenue; the cost of the bottles must be subtracted to find profit.
• D (correct): Revenue is 100 × 1.25 = $125 and cost is 120 × 0.35 = $42, so profit is 125 − 42 = $83.

Answer: D

Correct answer: $26,000. The first $10,000 earns

The rest of the commission is

which is 5% of

Total sales:

• A: This divides the whole $1,100 by 5%, ignoring that the first $10,000 earns only 3%.
• B: This is only the portion of sales above $10,000; the first $10,000 must be added back.
• C: This divides the whole $1,100 by 3%, as if every dollar of sales earned the lower rate.
• D (correct): The first $10,000 earns $300, leaving $800 at 5%, which is $16,000 of extra sales; 10,000 + 16,000 = $26,000.

Answer: B

Correct answer: $1,050. Rent:

Savings:

Total spending:

Remaining:

• A: This subtracts rent and savings but forgets the $1,260 of other bills.
• B (correct): Rent is $1,470 and savings are $420; 4,200 − 1,470 − 420 − 1,260 = $1,050.
• C: This subtracts only the $1,260 of bills and leaves out the rent and savings.
• D: This is the rent payment, 35% of $4,200, not the amount left over.

Answer: D

Correct answer: $195.50. Apply each change to the current price. After the increase:

After the decrease:

The base changed, so the price does not return to $200.

• A: This assumes equal percent changes cancel; the 15% decrease is figured on $230, not $200.
• B: This is the price after the increase only; the later 15% decrease was not applied.
• C: This applies the 15% decrease to the original $200 and skips the increase.
• D (correct): 200 × 1.15 = $230, then 230 × 0.85 = $195.50, because the decrease is taken from the larger price.

Answer: A

Correct answer: $480. Write 5% as 0.05 and multiply:

As a check, 10% is $960 and 5% is half of that.

• A (correct): Commission is 0.05 × 9,600 = $480.
• B: This uses 0.005 instead of 0.05 for 5%, making the answer ten times too small.
• C: This uses 0.5 instead of 0.05 for 5%, making the answer ten times too large.
• D: This is an arithmetic slip; 5% of 9,600 is half of 10% (960), which is 480.

Answer: C

Correct answer: $90.72. Both percents use the $72 food bill as the base. Tax:

Tip:

Total:

• A: This figures the tip on the taxed amount; the stem says the tip is based on the food bill before tax.
• B: This adds the tip but leaves out the 8% sales tax.
• C (correct): Tax is 0.08 × 72 = $5.76 and the tip is 0.18 × 72 = $12.96; 72 + 5.76 + 12.96 = $90.72.
• D: This adds the tax but leaves out the 18% tip.

Answer: A

Correct answer: $402.00. Multiply the hourly rate by the hours:

• A (correct): Gross pay is rate times hours: 16.75 × 24 = $402.
• B: This drops the 75 cents and multiplies 16 × 24.
• C: This misplaces the decimal point; 16.75 × 24 is about 17 × 24, roughly $400.
• D: This is a digit slip; 16.75 × 24 is 384 + 18 = $402.

Answer: B

Correct answer: $300. Use

• A: This is the interest for just one year; it must be multiplied by 3 years.
• B (correct): Interest is 5,000 × 0.02 × 3 = $300.
• C: This uses 0.2 instead of 0.02 for 2%, making the interest ten times too large.
• D: This is the account balance after 3 years; the question asks only for the interest.

Answer: C

Correct answer: 18 months. Solve

for t:

Convert to months:

months.

• A: The value 1.5 is the time in years; it must be multiplied by 12 to get months.
• B: This reads 1.5 years as 1 year 5 months; half a year is 6 months, not 5.
• C (correct): Time in years is 135 ÷ (2,000 × 0.045) = 135 ÷ 90 = 1.5 years, which is 1.5 × 12 = 18 months.
• D: This divides the interest by the rate number, 135 ÷ 4.5, without using the principal.

Answer: A

Correct answer: $24.75. Find the unit price first:

per pound. Then price the new amount:

• A (correct): The unit price is 14.85 ÷ 3 = $4.95 per pound, and 5 × 4.95 = $24.75.
• B: This multiplies the package price by 5 instead of the price per pound.
• C: This adds one more pound's price to the 3-pound package, which covers only 4 pounds.
• D: This is the cost of two 3-pound packages, which is 6 pounds.

Answer: B

Correct answer: $21.00. With 40% off, you pay 60% of the price:

• A: This is the amount saved (40% of $35); it must be subtracted from the price.
• B (correct): Paying 60% of the price: 0.60 × 35 = $21.
• C: This adds 40% to the price instead of taking it off.
• D: This takes off only 4% instead of 40%.

Answer: D

Correct answer: 47 hours. Regular pay for 40 hours:

The remaining

was overtime at

per hour, so

overtime hours. Total:

• A: This divides the whole $1,010 by $20, as if no hours were paid at the higher rate.
• B: This is only the overtime hours; the 40 regular hours must be added.
• C: This divides the $210 by $40, a double-time rate, instead of the $30 time-and-a-half rate.
• D (correct): Forty hours pay $800, leaving $210 at the $30 overtime rate, which is 7 overtime hours; 40 + 7 = 47.

Answer: B

Correct answer: 37.5%. Cost per bike:

so total cost is

Revenue:

Profit:

• A: This leaves out the shipping cost, dividing $35 profit by the $75 purchase price.
• B (correct): Total cost per bike is 75 + 5 = $80 and profit per bike is 110 − 80 = $30; 30 ÷ 80 = 0.375 = 37.5%.
• C: This divides the $30 profit by the $110 selling price; the base here is the cost.
• D: This is the dollar profit per bike written as a percent, not profit divided by cost.

Answer: C

Correct answer: $1,010.00. Rent:

Savings:

Other bills:

Remaining:

• A: This subtracts rent and savings but forgets the $1,150 of other bills.
• B: This subtracts only the $1,150 of bills and leaves out rent and savings.
• C (correct): Rent $1,008 + savings $432 + bills $1,150 = $2,590, and 3,600 − 2,590 = $1,010.
• D: This figures the 12% savings on the pay left after rent; the stem says both percents are of take-home pay.

Answer: B

Correct answer: Store B, by $2.88. At Store A,

per bottle, so 72 bottles cost $17.28. At Store B with the coupon,

per pack, or $0.20 per bottle, so 72 bottles cost $14.40. Store B is cheaper by

• A: This ignores the coupon; without it Store B costs $0.25 per bottle, but the coupon lowers it to $0.20.
• B (correct): Store A costs $0.24 per bottle and Store B costs 7.20 ÷ 36 = $0.20 per bottle, so 72 bottles save 72 × 0.04 = $2.88.
• C: This finds the savings for only 36 bottles; the shopper needs 72.
• D: This is the total coupon value on two packs, not the difference between the two stores' costs.

Answer: D

Correct answer: 7%. Tax amount:

Rate:

which is 7%. Check:

• A: This divides the $4.48 tax by the $68.48 total; the tax rate is based on the price before tax.
• B: This treats the dollar amount of tax as the percent without dividing by the price.
• C: This misplaces the decimal; 0.07 as a percent is 7%, not 0.7%.
• D (correct): The tax is 68.48 − 64 = $4.48, and 4.48 ÷ 64 = 0.07 = 7%.

Answer: A

Correct answer: $9,100. Convert time:

Interest:

Total repaid: principal plus interest,

• A (correct): Thirty months is 2.5 years; interest is 8,000 × 0.055 × 2.5 = $1,100, and 8,000 + 1,100 = $9,100.
• B: This is only the interest; the total repaid also includes the $8,000 borrowed.
• C: This uses 30 as the number of years; 30 months must be divided by 12 first.
• D: This rounds 30 months up to 3 years; 30 months is 2.5 years.

Answer: D

Correct answer: $51.36. Multiply the price by 1 plus the tax rate:

• A: This is only the tax; it must be added to the $48 price.
• B: This subtracts the tax as if it were a discount.
• C: This adds $7 instead of 7% of the price.
• D (correct): Tax is 0.07 × 48 = $3.36, so the total is 48 + 3.36 = $51.36 (or 1.07 × 48).

Answer: B

Correct answer: $60.00. After 15% off, the customer pays 85% of the original: 0.85 × original = 51. Divide:

Check:

• A: This adds 15% of the sale price; the discount was 15% of the original price, a different base.
• B (correct): The sale price is 85% of the original, so the original is 51 ÷ 0.85 = $60.
• C: This takes another 15% off the sale price instead of working back to the original.
• D: This adds $15 to the sale price, treating the 15% as $15.

Answer: A

Correct answer: $546.00. Find each job's pay separately and add:

Total:

• A (correct): The cafe pays 18 × 15.50 = $279 and tutoring pays 12 × 22.25 = $267; 279 + 267 = $546.
• B: This averages the two rates and multiplies by 30 hours, but she did not work equal hours at each rate.
• C: This swaps the rates, paying the 18 cafe hours at the tutoring rate.
• D: This pays all 30 hours at the sum of the two rates.

Answer: B

Correct answer: $630. Add the expenses:

Subtract from income:

• A: This is the total of the expenses, not the amount left over.
• B (correct): Expenses total 725 + 310 + 140 + 95 = $1,270, and 1,900 − 1,270 = $630.
• C: This is an addition slip; the expenses total $1,270, not $1,170.
• D: This is a slip that adds an extra $100 to the expenses.

Answer: B

Correct answer: $116.00. Work backward through the steps in reverse order. Undo the tax:

Undo the 25% discount (the customer paid 75%):

Check:

• A: This is the sale price before tax; the 25% discount still has to be undone.
• B (correct): Removing tax: 93.96 ÷ 1.08 = $87; undoing the discount: 87 ÷ 0.75 = $116.
• C: This adds 25% to the sale price; the discount was 25% of the original, so divide by 0.75.
• D: This combines the steps into one 17% net discount; each percent applies to a different base.

Answer: D

Correct answer: 37.5%. Markup amount:

Markup percent is the markup divided by the cost:

• A: This divides the $12 markup by the $44 selling price; markup percent is based on cost.
• B: This is the dollar markup written as a percent, without dividing by the cost.
• C: This is the selling price as a percent of cost (44 ÷ 32), not the markup added.
• D (correct): The markup is 44 − 32 = $12, and 12 ÷ 32 = 0.375 = 37.5% of cost.