**1:** Nick has a revolving department store credit card account with an annual percentage

rate of 15%. Last month’s balance on the account was $423.78. During the current month,

he made purchases totaling $123.42 and made a payment of $100. The store uses the

unpaid balance method. According to this information, what must be the amount of the

finance charge? Round your answer to the nearest cent.

**2:** What is the future value of an ordinary annuity of $12,000 per year, for three years, at

9% interest compounded annually? A. $39,337.20 C. $36,000.00 B. $39,240.00 D.

$14,442.75

Following is the formula to calculate future value of annuity

Future value of annuity = Cash flows * Future value interest factor

F.V.A = cash flows * (FVIF)

**3:** On a balance sheet, the accounts of notes payable, salaries payable, and taxes payable

would fall under the category of

**4:** A company purchased an air conditioning system for $10,200. The shipping charges on

the system were $875, and the setup costs were $1,250. The system is expected to last for

five years and has a residual value of $2,000. If you use the straight-line method to

calculate the depreciation for this air conditioning system, what would be the annual

depreciation?

**5:** Which of the following are the four elements that are included in the total amount of a

mortgage payment?