STIE IT&B Mathematic for Economics MID TERM

CLASS DAY/TIME : TASMANIA : TUESDAY/17.00-19.00

STUDENT MUST ANSWER ALL QUESTIONS IN THE ANSWER SHEETS PROVIDED. STUDENT MUST SHOW ALL THE WORKING CLEARLY. CALCULATERS ARE ALLOWED. NO MOBILE PHONES ARE ALLOWED. 1. A painting contractor arrived at a sixty-unit apartment complex with 147 12 gallons of exterior paint. His crew sprayed 68 12 gallons on the wood siding, rolled 37 38 gallons on the masonry exterior, and brushed 5 34 gallons on the trim. Find the number of gallons of paint remaining. 2. A company spends three times as much on training as it does on company cars. If $19,000 is spent on cars, how much is spent on training? 3. If four videocassettes cost $75, how many did Kim buy if she received $31.25 in change from her $500 check? 4. Rick Wilson has an 82% ownership in a company called Puppets and Clowns. The company has a value of $49,200 and Wilson receives an income of 30% of the value of his ownership. Find the amount of his income. 5. In the past year 51,156 airline workers have lost their jobs through layoffs. If this was a 9.8% reduction in the number of workers, how many workers were there after the layoffs? 6. The average cost of a wedding today is $19,104 which is 26% more than the average cost 5 years ago. Find the average cost of a wedding 5 years ago. Round to the nearest cent. 7. Erika Guitierrez, owner of Wallpaper Plus, says that her sales have increased exactly 20% per year for the last 2 years. Her sales this year are $170,035.20. Find her sales 2 years ago.

Prepared by Ika Puspa S., BA (Hons)

Page 1

8. The fire insurance policies on the Global Manufacturing Company contain an 80% coinsurance clause and the warehouse is valued at $2,400,000. Fire policies on the warehouse are $900,000 with Company A and $300,000 with Company B. Global Manufacturing has a fire loss of $800,000. Find (a) the amount that the insured would receive from the insurance company, (b) the amount that each of the insurance companies would pay. Round to the nearest dollar. 9. Feathers Custom Cabinet owns a class A building. The contents are valued at $83,300 and the territorial rating is 4. Find the annual fire insurance premium. 10.Martinez Horse Stables pays an annual fire insurance premium of $3,960. They change insurance companies after 2 months. Find the amount of refund to the insured using the Short-Term Rate Schedule and Proration period. 11.Kathy Stephenson owns a rental units valued at $185,000 and they are insured for $111,000. Fire loss is $28,000. Assume that an 80% coinsurance clause requirement is used; find the amount of loss paid by (a) the insurance company and (b) the insured. 12. Michelle Massa is 17 years old, has not had drivers training, lives in territory 2, and purchased new Jeep Cherokee with a category of 6. She wants 50/100 liability limits, $25,000 property damage limits, comprehensive and collision insurance and uninsured motorist coverage. Find her annual insurance premium. 13.An employee for Safeco Security was driving to a job when a ladder fell from the truck into the path of an oncoming car. Damage to the car was $10,250. Both the driver and the passenger suffered injuries and were given court awards of $20,000 and $40,000 respectively. The security company had 25/50 liability insurance limits and $10,000 property damage limits. Find (a) the total amount paid by the insurance company for both property damage and liability and (b) the total amount beyond the insurance limits for which business owner was liable. 14.In a recent survey of 1,100 employers, it was found that 84% offer only one health plan to employers offer only one health plan?

Prepared by Ika Puspa S., BA (Hons)

Page 2

15.Gina Harden was offered a job in Canada at an annual salary of $54,700 in Canadian dollars. Find the salary in U.S. dollars if 1 Canadian dollar can be exchanged for U.S. $0.68. GOOD LUCK

Prepared by Ika Puspa S., BA (Hons)

Page 3