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Business Mathematics DSST Practice Test 2
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The Business Mathematics DSST is broken down as follows: 50%    Business Applications 16%    Statistics 15%    Algebraic Concepts 14%    Financial Mathematics 05%    Number Sense Though there are different versions of Business Mathematics DSST, you'll most likely see some of the following on your exam: Installment Purchases Annuities and present value Simultaneous linear equations Unit Conversions Extrapolation and Interpolation Break-even analysis (algebraically and graphically) Quadratic equations and functions Investment performance measures Depreciation/salvage... Show more
Business Mathematics DSST Practice Test 2
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25 Questions

1. The credit terms for a $1,000 purchase are written 3/10, n/20. If the customer pays in 8 days, what will the customer pay?
2. The index number for stock XYZ in 2000 was 250 relative to the price in 1970. If the stock was $12 per share in 1970, what was the price in 2000?
3. Given the following spreadsheet, what would be the best linear interpolated value for the unknown cell x?
145
7x
1589
"
4. What is a sure way to decrease the time it takes to sell enough units to break even?
5. A boy is in the 75th percentile for his height at his current age. What do we know about the boy?
6. A concrete mixer is purchased from a hardware store on installments. Who legally owns the concrete mixer if the second payment is missed by the buyer?
7. Bryan wishes to prepare for his future retirement in 10 years. He deposits $85,000 at the end of each year for 10 years into an account paying 8% annually. How much will be in his account at the end of the 10 years?
8. The local high school held a musical and raised $988.75 from admissions. If the tickets were $3.50 for adults and $1.75 for children and 335 tickets were sold, how many of the tickets were for adults and how many were for children?
9. In baseball, a batting average is the number of hits divided by the number of times at bat rounded to 3 decimal places. What would the batting average be of a player who got 154 hits out of 403 at bats?
10. A manufacturer estimates that he will sell 10,000 widgets. He knows that with only minor changes to his current tool set in his plant he can make widgets at $4 per unit, with a fixed cost of $9,800. How much additional fixed cost could the manufacturer spend on top of the $9,800, if the extra fixed costs achieved a variable cost of $3.50 per unit?
11. If the nominal annual interest rate is 18%, what is the effective annual interest rate?
12. Elias searched the internet for basketball prices and was amazed at how many different prices he found. He found the following prices: $19.17, $22.50, $12.95, $16.99, $17.50, $18.25, $16.99. What is the 50th percentile for these prices?
13. A researcher presented a paper at a conference that showed that El Niño was responsible for increased onion production in New Mexico. However, after the paper was published, numerous other researchers showed that there was no significant difference in his data. The researcher gave a retraction at a later conference. What type of error was this?
14. What interest would be earned if $500 were invested for 5 years at 8% simple interest?
15. The percentage markup on a dress is 85%, and the dress is priced to sell at $185. What is the cost of the dress?
16. What is the stock yield if a stock’s closing price is $45 and its annual dividend per share is $2?
17. Dariya works at a carnival at a booth where children throw darts at balloons to win a prize. The children toss a dart until they successfully pop a balloon. When popped, each balloon reveals a prize number 1 through 4, where 4 is the most expensive prize and 1 is the least expensive. Dariya needs to prepare 100 balloons so the expected outcome if the balloons are popped at random is 1.5. She is told that there must be one #4 prize and ten #3 prizes. How many of each balloon must she prepare from 1 to 4?
18. If the depreciation of a $20,000 widget is $2,000 and it depreciates over 7 years, what is its salvage value?
19. A woman wishes to give $50 at the end of each month to a charity for two years. The interest rate that can be earned on the money is 12%. What is the present value of this gift?
20. Which of the following defines P/E ratio?
21. A piano in the music store wasn’t selling at $9,500, so the shop owner decided to mark it down to $6,950. What would be the markdown percentage for the piano?
22. Crystal is looking at credit cards and notices that the APR on her credit card is 19.2%. What is the monthly interest rate?
23. If a company’s current ratio is 2:1, what do you know about the company?
24. What would be the best linear extrapolation of the points (0, 1) and (1, 3)?
25. How would the credit terms be notated for a 2% discount in 20 days and net due in 30 days?

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