MA 105 Exam 1 questions with
complete solutions
Formulas to know - ANS ✔✔Interest= PV x r x t
Present Value= FV / 1+rt
Future Value= PV (1+rt)
Rate of Interest = I / PV x t
Time= FV - PV / PV x R
Focal Date - ANS ✔✔is the place on the time diagram where all your money is moved. "End of
the arrow".
Accumulating vs. Discounting - ANS ✔✔Accumulating- arrow moves right.
Discounting- arrow moves left.
Banker's Rule - ANS ✔✔used to calculate simple interest. This rule considers a year to have 360
days.
Approximate Days - ANS ✔✔Approx- count full months as 30 days than add exact days for
remaining days.
Ex. March 14 to July 19
March 14 to July 14= 4 Months
July 14 to July 19= 5 Days
120+5= 125 Days
complete solutions
Formulas to know - ANS ✔✔Interest= PV x r x t
Present Value= FV / 1+rt
Future Value= PV (1+rt)
Rate of Interest = I / PV x t
Time= FV - PV / PV x R
Focal Date - ANS ✔✔is the place on the time diagram where all your money is moved. "End of
the arrow".
Accumulating vs. Discounting - ANS ✔✔Accumulating- arrow moves right.
Discounting- arrow moves left.
Banker's Rule - ANS ✔✔used to calculate simple interest. This rule considers a year to have 360
days.
Approximate Days - ANS ✔✔Approx- count full months as 30 days than add exact days for
remaining days.
Ex. March 14 to July 19
March 14 to July 14= 4 Months
July 14 to July 19= 5 Days
120+5= 125 Days
