ISP 120 Final Review

Percentages and Rates

1.  The following table list the 1998 average daily circulation of ten newspapers with the largest daily circulation in the US.

a. How many times larger is the circulation of the Wall Street Journal greater than the circulation of the Chicago Tribune?

b. By how many percent is the circulation of the Chicago Tribune larger than the circulation of the Chicago Sun-Times?

c. The newspaper that had the larger circulation in the world was Yomiuri Shimbun in Japan.  Its 1998 circulation was 14,532,694.  By how many percent is its circulation larger than the circulation of the Wall Street Journal?

d. The circulation of the Chicago Tribune in 1988 was 774,045. By how many percent did the circulation drop from 1988 to 1998?

2.  In the period January 2000 to March 2000, stock for Sapient Corporation, a consulting company that helps businesses put their operations on the internet, dropped 51% and then rose by 49%.  By how many percent did price change over the whole period?

3. Cigarette in the US has decreased over the last 20 years, even though the rate is still relatively high.  In 1998, 277 of every 1000 individuals in the US over the age of 12 reported that they were smoking, a 28% decrease since 1985.  What was the rate in 1985?

4.  a.  At DePaul University, minority students represented 31% of the enrollment in 2001. If there were 21,363 students enrolled in 2001, about how many of these students are minority students?

b.  Chicago’s population grew from 2.78 million in 1990 to 2.90 million in 2000.  By how many percent did it grow?

c.  The January 14, 2002 issue of TIME magazine reported that Wal-Mart’s 3^rd quarter revenues for 2001 were 600% more than its No. 2 competitor, K-Mart.  What were K-Mart’s revenues during this period if Wal-Mart’s revenues were $48 billion?  

d.  In 1993, 248.7 million people in the United States were born in the United States, and the rest, 19.8 million were foreign born.  What percentage of the population of the US was foreign born?

e.  Over the last four years, DePaul’s freshman class has grown by 66%.  What is the Fall 2001 freshman enrollment if the 1997 enrollment was 1234 students? 

5.  In 2001, 6,113 applicants were accepted to DePaul. This represents about a 72% acceptance rate. Of the students who were accepted, 2,050 students enrolled at the university.

1. How many students in 2001 applied for admission at DePaul?
2. What percent of the students who were accepted to DePaul actually enrolled at the University?

6.  The January 13, 2002 issue of the New York Times  reported that there were 547,867 foreign students enrolled at US colleges and universities in 2000-01 — representing a 6.4% increase from the previous year. 

a.       How many foreign students were studying in US colleges and universities during 1999-2000?  

b.      The greatest number (59,939) of foreign students came from China.  What percent of the foreign students studying in the US were from China?  

7.  The December 11, 2002 issue of Sports Illustrated reported that the federal spending for Olympic Games held in the United States was $610 million for the 1996 Atlanta Games and $1.5 billion for the 2002 Salt Lake City Games. (The figures have been adjusted for inflation.)

a.       How many times more federal money was spent on the Salt Lake City Games than the Atlanta Games?

b.       By what percent  is the federal spending for the Salt Lake City Games more than the Atlanta Games?

c.       By what percent is the federal spending for the Atlanta Games less than the Salt Lake City Games?

Consumer Price Index

8. Carefully describe a) what the CPI is, b) how it is constructed, and c) what the meaning of actual index numbers is (e.g., the CPI in 1999 was 166.6; what does 166.6 mean?)

1. Using the CPI, add a column to the table in which you calculate defense spending for these years in constant 2002 dollars, and cut and paste the table into your word document. 

2. Create an XY graph showing spending in constant 1999 dollars for the period 1960-2002.

3. In a well written paragraph describe the graph you made in c.

Savings Accounts

15. You deposit $2500 in a savings account yielding 4.7% compounded quarterly. 

a. If no money is withdrawn for 8 years, what will be value of the account.

b. How long will it take for this account to double in value?

c.  What is annual percentage yield of this account?

16.   Suppose that you deposit $700 in a bank that offers an APR of 6.25% compounded monthly.

        a.  What is your account balance after one year?
        b.  What is your account balance after 8 years? 
        c.  What is the annual percentage yield for this account? 

17. Suppose you had $1,500 to deposit in a bank account. Which of the following rates would you choose? In a short paragraph, explain your choice.

a. An account with annual compounding and an APR of 7%. 
b. An account with quarterly compounding and an APR of 6.85%. 
c. An account with monthly compounding and an APR of 6.7%.   

18.  Be able to compute compound interest.

        a.  You put $7,500 in the bank.  What is your balance in 12 years assuming the following situations?

• 8% compounded annually  
• 8% compounded quarterly   
• 8% compounded monthly   

b.  Determine the APY for each of the above (shown as a percentage).  How many decimal places must you show at a minimum to distinguish the difference between APYs.

 Loans

19.  You have decided to buy a 2003 Chevy Cavalier. The total cost with tax, title, license and optional equipment is $20,500. You will make a down payment equal to 10% of the total cost of the car. The remaining amount will be financed.

You have two financing options.

Option 1 - Get $2,500 cash back. This amount will reduce the amount you need to finance. You will be able to get a 5 year car loan on the remaining amount with a 6.0% interest rate from your bank.

Option 2 - Get no cash back and finance the entire amount. The loan will be for 3 years with a 0.0% interest rate from GMAC financing.

a. What is the amount of money that you will need to borrow under Option 1? 
b. Make an amortization table for Option 1 and verify that your ending balance after 60 months is zero. Paste the first five lines (months 0 - 4) in your Word document. What is your monthly payment? What is the total amount paid over the term on the loan?
c. How much will you need to borrow if you choose option 2? What is your monthly payment?
d. Which financing option should you choose? Explain.  

Credit Cards

20.  You only use your credit card in the case of an emergency. You charge $4,000 in auto repairs to credit card which has an annual interest rate of 11.99%. What should your monthly payment be if you would like to pay off your balance in full after two years?  

21.  You make a purchase for $3,501 on your credit card which has an annual interest rate of 17.99%. If you pay the minimum payment of 2% per month (not less than $25), what is your balance after 4.5 years, assuming you make no other purchases with your credit card? 

22.  You make a purchase for $2,723 on your credit card which has an annual interest rate of 15.99%. The credit card company offers a minimum payment of 3% per month (not less than $25). How many years will it take your balance to equal $10.00 assuming your make no other purchases with your credit card?