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1. Lulu's Bath Works purchases towels with an invoice of $12,456, and terms of sale of 5/10 n/30. What is the net amount due on the order if a partial payment of $2,500 is made on the 10th day.
a. 10,155
b. 9,824.42
c. 9,956
d. 2,631.59
2. Tony invests $7,500 at 12% interest, quarterly for 11 years. Calculate the compound amount for his investment, and then determine the amount of compound interest.
a. 20,035.80
b. 18,589.13
c. 27,535.80
d. 26,089.13
3. Suppose you wish to have $16,500 in 2 years. Use the present value formula to find how much you should invest now at 8% interest, compounded semi annually in order to have $16,500, 2 years from now. Then calculate the amount of interest.
a. 2,395.80
b. 14,146.11
c. 2,353.89
d. 14,104.27
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