Problem 1 / Tim wants a monthly income of $30 from a CD, placed at a rate of 4%

Question

Problem 1 / Tim wants a monthly income of $30 from a CD, placed at a rate of 4% per annum. what amount of money should he put in the bank to receive his monthly income?

Problem 2/ Sears buys a TV from a wholesaler with a $360 list price and a 20 percent trade discount

a- what is the trade discount ?

b- wha is the net price ?

problem3/ marry sport inc. sells a bat for $ 60 to make her desired profit, she needs 40 per cent mark up on cost

a- what was her cost price?

b- what was her dolar mark up

Problem 4/David white and mary little sell cars for a GM dealer. Over the past year, they sold 420 cars. David sells six times as many cars as Mary. How Many Cars each Sold ?

Problem 5/ Elli Lilli earns $ 2.50 Per share. Today, the stock is trading at $33.35. the Co. Pays an annual dividend of $ 1.15.

A/ calculate the Price earnings ratio ( to the nearest whole number)

B/ Calculate the yield on the stock ( to the nearest whole number)

Explanation / Answer

(1) Let c be the amount to be deposited.

so, c*0.04 = $ (30*12) [ As intersest is for annum]

c= $9,000.   

   so he should put $9,000 in the bank to recieve a monthly income of $30.

(2) a. Trade discount= $(360*0.2)

Trade discount=$72.

   b. net price= $ (360 -72)

   net price= $ 288.

(3) a. cost price= $(60+0.4*60)

cost price= $84.

   b. Dollar markup =$(0.4*60)

Dollar markup =$24.

(4). Let mary sells 'X' cars.

then david sells 6X cars.

Total = 7X = 420 cars

so X= 60 cars.

so, Mary sells 60 cars and David sells 360 cars.

(5). A/ Price earnings ratio =(Market Value per Share / Earnings per Share (EPS))

  Price earnings ratio =($33.35 / $2.5)

  Price earnings ratio =13.34 = nearly 13.

   B/ current yield =($ 1.15/ $ 33.35)

current yield =0.03448

Current yield= 3.44%= nearly 3%

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