Name: Date: Score

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1 Math 1001 Exam 1 Name: Date: Score (1) (12 points) The following table shows the top-selling albums (CDs) of all time, with certified sales in millions. Title, Artist, Release Year Sales (millions) Thriller, Michael Jackson (1982) 42.3 Greatest Hits, Eagles (1976) 32.2 The Bodyguard, Whitney Houston (1992) 26.6 Back in Black, AC/DC (1980) 25.9 Dark Side of the Moon, Pink Floyd (1973) 22.7 Bat Out of Hell, Meatloaf (1977) 20.5 State whether the variables are qualitative or quantitative. Draw a bar graph, pie chart, histogram, or stemplot that corresponds to the given data (the drawing should correspond to your answer for part a).

2 2 (2) (8 points) At age 35, you start saving for retirement. If your investment plan pays an APR of 6% and you want to have $2 million when you retire in 30 years, how much should you deposit monthly? (3) (8 points) Three years after buying 200 shares of XYZ stock for $25 per share, you sell the stock for $8500. Compute the total and annual returns on the following investments.

3 3 (4) (12 points) Assume you take out a home mortgage of $ with a fixed APR of 4% for 15 years. Calculate the monthly payment. Determine the total amount paid over the term of the loan. (c) Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest?

4 4 (5) (8 points) Consider the following three lease options for a new car. Determine which lease is least expensive, assuming you buy the car when the lease expires. (The residual is the amount you pay if you choose to buy the car when the lease expires.) Justify your answer. Plan A: $1000 down payment, $400 per month for two years, residual value of $10000 Plan B: $500 down payment, $250 per month for three years, residual value of $9500 Plan C: $0 down payment, $175 per month for four years, residual value of $8000

5 5 (6) (12 points) The table below gives the average state and local sales tax rates in six coastal states and six noncoastal states. Coastal States Noncoastal States CA 8.13% DE 0% MA 6.25% IL 8.27% MD 6.00% KS 8.26% NH 0% MN 7.18% NY 8.48% ND 6.28% WA 8.79% OH 6.78% Find the mean, median, and range for the two data sets. Give the five-number summary and draw a boxplot for each of the two data sets.

6 6 (7) (8 points) Use the following housing price index table to answer the following questions. City Index City Index Denver 100 Boston 358 Miami 194 Las Vegas 101 Phoenix 86 Dallas 81 Atlanta 90 Cheyenne 60 Baltimore 150 San Francisco 382 If you see a house valued at $ in Boston, find the price of a comparable house in Baltimore. If you see a house valued at $ in Cheyenne, find the price of a comparable house in San Francisco.

7 (8) (8 points) According to modern science, Earth is about 4.5 billion years old and written human history extends back about years. Suppose you represent the entire history of Earth with a 100 meter long timeline, with the birth of Earth on one end and today at the other end. What distance represents 1 billion years? 7

8 8 (9) (8 points) The table below gives the 2012 per capita gross domestic product (GDP) and the per capita spending on defense for eight developed countries. Per Capita GDP ($) Per Capita Defense $ Australia China France Germany Japan Russia United Kingdom United States Make a scatterplot for the data. State whether the two variables appear to be correlated, and if so, state whether the correlation is positive, negative, strong, or weak.

9 9 (10) (8 points) Using 2013 rates, calculate the tax owed by each of the following people. Assume that they all claim the standard deduction and neglect any tax credits. Sheldon is single with no dependents. His adjusted gross income is $ Amy is a head of household taking care of two dependent children. Her adjusted gross income is $90000.

10 10 (11) (10 points) The following table shows median annual earnings for women and men with various levels of education. High School Associate s Bachelor s Professional only degree only degree only degree Women $21113 $39286 $49108 $80718 Men $40447 $50928 $66196 $ Assuming the difference shown in the table remains constant over a 40-year career, approximately how much more does a woman with a bachelor s degree earn than a woman with a high school education? As a percentage, how much more does a man with a professional degree earn than a woman with a professional degree? Assuming that difference remains constant over a 40-year career, how much more does the man earn than the woman?

11 (12) (8 points) Paula invests $4000 in an account with an APR of 4.8% compounded continuously while Petra invests $3600 in an account with an APR of 5.6% compounded monthly. Determine who has more money after 20 years. 11