FIN 571 TUTOR Future Starts Here/fin571tutor.com FIN 571 TUTOR Future Starts Here/fin571tutor.com | Page 13

3 . A business just took out a loan for $ 100,000 at 10 % interest . If the business pays the loan off in three months , how much did the business pay in interest ? 4 . What is the annual percentage yield ( APY ) for a deposit paying 5 percent interest with monthly compounding ? 4 . The Income Statement This lesson will help you refresh your knowledge on the basics of the income statement . Brushing up on these concepts now will help you tackle your finance coursework later . General Ledger for ABC Company . The following is the general ledger for ABC Company as of December 31 , 20X1 . Use this information to answer questions ( 1 ) through ( 4 ). 1 . What is the amount of gross profit to be reported on ABC Company ’ s 12 / 31 / X1 income statement ? 2 . What is the amount of operating income ( EBIT ) to be reported on ABC Company ’ s 12 / 31 / X1 income statement ? 3 . What is the amount of earnings before taxes ( EBT ) to be reported on ABC Company ’ s 12 / 31 / X1 income statement ? 4 . What is the amount of net income to be reported on ABC Company ’ s 12 / 31 / X1 income statement ? 5 . Fractions and Decimals This lesson will help you review fractions and decimals : calculating , converting , and recognizing how to use them in a financial setting . 1 . 54 / 32 converted to a mixed number is ________. 2 . The product of one and four thirty-seconds and twenty thirty-seconds is ________. 3 . One and eight thirty-seconds divided by twelve thirty-seconds is ________. 4 . A U . S . Treasury bond is trading at 98 and 6 / 32 . Convert this price to its decimal form . 5 . What is the percentage increase if the S & P 500 Index is currently trading at 1,100 and rises 55 points ? 6 . Exponential Functions This lesson will help you refresh your skills using exponents . Many financial equations rely on exponents to show compounding and growth . 1 . A business acquaintance promises to deliver a $ 20 bill to you one year from today . How much should you be willing to pay today for this promise ? 2 . What is the present value of $ 1,000 received three years from today if interest rates are currently 6 percent ?