This is an electronic version of the print textbook Due to electronic rights restrictions, some third party content may be suppressed Editorial review has deemed that any suppressed content does not materially affect the overall learning experience The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest Contemporary Mathematics FOR BUSINESS AND CONSUMERS 6E This page intentionally left blank Contemporary Mathematics FOR BUSINESS AND CONSUMERS 6E Robert A Brechner Miami-Dade College Contemporary Mathematics for Business and Consumers, Sixth Edition Robert A Brechner Vice President of Editorial, Business: Jack W Calhoun Publisher: Joe Sabatino Sr Acquisitions Editor: Charles McCormick Developmental Editor: Daniel Noguera Editorial Assistant: Courtney Bavaro © 2012, 2009 South-Western, Cengage Learning ALL RIGHTS RESERVED No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher Marketing Manager: Adam Marsh Content Project Manager: Darrell E Frye Media Editor: Chris Valentine Frontlist Buyer, Manufacturing: Miranda Klapper Marketing Communications Manager: Libby Shipp Production Service: Integra Software Services Sr Art Director: Stacy Jenkins Shirley For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 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1-111-52937-X Brief Edition book only ISBN 13: 978-1-111-52936-9 Brief Edition book only ISBN 10: 1-111-52936-1 South-Western 5191 Natorp Boulevard Mason, OH 45040 USA Cengage Learning products are represented in Canada by Nelson Education, Ltd For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in the United States of America 15 14 13 12 11 A L L IF E S REAL MATH RE R E A L B U S IN E S Dear Student: margin of a mbers From the profit ess revolves around nu ble Today’s world of busin ing numbers is inescapa fast-food sandwich—us up on a ers and basic math corporation to the mark le working with numb and and feel comfortab ss in the The better you underst to maximize your succe tter prepared you’ll be the be functions and principles, business world ematics for d Contemporary Math in your hands I create an inviting, That’s why this book is lid math foundation in e students like you a so ers to giv they are important to Business and Consum es, you’ll also see why es learning the principl t a math manageable way Besid in your career This is no courses and, ultimately, siness math as a tool to your success in other bu business book that uses siness examples It’s a book that uses a few bu success further your journey to Several and a good grade—easier ys to make the success— re are wa for you As with any journey, the a tremendous difference learning tools can make important and valuable you understand the ources available to help strate the tools and res e Math The following pages illu the least amount of tim best grade possible—in to get the u studied it With math principles—and w long it’s been since yo imidating no matter ho ch better doesn’t have to be int in mathematics and mu course more confident ve this a little effort, you’ll lea in your business career equipped to succeed u to contact me with success, I encourage yo l commitment to your ailing me at As part of my persona 88-284-MATH or e-m my toll-free number 1-8 using questions or comments bizmath@aol.com st Warmest regards and be Robert Brechner wishes, vi Step into the Real Business World with the Strengths of Contemporary Mathematics, 6e I N T HE B USINESS W ORLD US Use the followin Useful and interesting connections to the inte platter in the am real business w world Many have useful information to help you manage your own personal financ finances New Federal Debit Card – In 2008, the U.S Treasury introduced a debit card that people without traditional bank accounts can use to access federal benefits such as Social Security and disability payments Federal payments are credited to the cards each month, enabling users to make free withdrawals from ATMs in the government’s Direct Express network © Clarke American ES Natalie 1585 S Tallaha PAY TO THE ORDER OF L EARNING T IPS 037-049 11755 Biscay GUARDIAN ® SAFETY North Miami, Frequently, the left side of an equation represents the “interaction” FOR of the variables, and the right side :067003 shows the “result” of that interaction In this example, the left side is the interaction (in this case, addition) of the wax and wash sales The right side is the result, or total F ORMULA R ECAP C HARTS 920 Lists of all-important formulas provide you with a quick reference for homework and test preparation X1X TRYITE R I E Don and Chuck a Chu Ch Chuc The Federal Deposit Insurance Corporation (FDIC) insures every depositor for at least $250,000 at each insured bank People with more than $250,000 can split their cash among insured banks and remain fully protected The FDIC insures more than 8,000 banks nationwide B USINESS M ATH T IMES Appearing every three chapters beginning with Chapter 3, a page of current news items, cartoons, brain teasers, famous business and inspirational quotes, career information, and other interesting facts and figures related to business topics Proof: 640 640 Interaction Result = X X 360 Helpful math mathematical hints, shortcu and shortcuts, reminders to enhance your understanding of X 360understa 640 the chapter m material D OLLARS AND S ENSE The new “Dollars and Sense” feature stimulates your curiosity with current news items and statistics related to chapter topics “Dollars and Sense” provides you with numerous personal finance and business money tips vii Additional Tools to Help You Succeed A NSWERS TO O DD -N UMBERED E XERCISES Answers to all of the odd-numbered Section Review Exercises and Assessment Test questions (except Business Decisions) allow you to easily check your progress on class assignments and homework T RY -I T E XERCISES with W ORKED -O UT S OLUTIONS provide you with immediate feedback as you evaluate your comprehension of each new topic TRY IT: EXERCISE SOLUTIONS FO Numerical Form 1a 49,588 1b 804 1c 1,928,837 1d Word Form 900,015 Forty-nine thousand, five hundred eighty-eight Eight hundred four One million, nine hundred twenty-eight thousand, e Nine hundred thousand, fifteen 1e 6,847,365,911 Six billion, eight hundred forty-seven million, three 1f 2,000,300,007 2a 51,700 3a 39,481 5,594 111,029 56,104 Two billion, three hundred thousand, seven 2b 23,440 : Verify: J UMP S TART The all new “Jump Start” feature in each Section Review gives you the added advantage of seeing the worked-out solution to the first question of each new topic set All Jump Start solutions are available on the website 2c 175,450,000 11,029 5,594 39,481 56,104 6,948 3b Amount of 330 Invoice 7,946 $15,800.00 89 12,660.00 5,583,991 2,421.00 6,940.20 9,121.44 2d 60,000 Verify: Terms of 18,606 Sale 5,583,991 3/15, n/30 89 2/10, n/45 7,946 4/10, n/30 330 2/10, n/30 /15, n/60 Cash Discount $474.00 For the following transactions, calculate the credit given for th ment and the net amount due on the invoice Amount of Invoice $8,303.00 1,344.60 5,998.20 7,232.08 Terms of Sale Partial Payment Credit for Partial Payment 2/10, n/30 3/10, n/45 4/15, n/60 /20, n/45 $2,500 460 3,200 $2,551.02 5,500 81250_01_ch01_p001-030.indd 24 25 Midtown Market received the following items at a discount of of canned peaches listing at $26.80 per case and 45 cases of ca $22.50 per case a What is the total list price of this order? E XCEL ® E XERCISES b What is the amount of the trade discount? c What is the net price of the order? 26 Shopper’s Mart purchased the following items Calculate the ext trade discounts for each line the invoice subtotal and the invoice t A Each chapter includes 8–12 new Excel® exercises, with three levels of difficulty—beginner, intermediate, and advanced—that provide hands-on practice with realistic business calculations tailored to your developing skill levels Student versions are available 81250_07_ch07_p190-230.indd 217 on the website viii DEDICATIO N To my wife, Shari Joy You are my shining star and constant inspiration I love you! ABO UT THE AUTHO R S Photo by Shari Brechner Robert Brechner Robert Brechner is Professor Emeritus, School of Business, at Miami-Dade College, the largest multi-campus community college in the country For the past 42 years, he has taught Business Math, Principles of Business, Marketing, Advertising, Public Relations, Management and Personal Finance He has been Adjunct Professor at Florida Atlantic University, Boca Raton; International Fine Arts College, Miami; and Florida International University School of Journalism and Mass Communications Bob holds a Bachelor of Science degree in Industrial Management from the Georgia Institute of Technology in Atlanta, Georgia He also has a Masters of Business Administration from Emory University in Atlanta He has consulted widely with industrial companies and has published numerous books covering a variety of business topics Bob lives in Coconut Grove, Florida, with his wife, Shari Joy His passions include travel, photography, sailing, tennis, and running Bob encourages feedback and suggestions for future editions from those who use the text Students as well as instructors can contact him toll-free at 1-888-284-MATH or e-mail him at bizmath@aol.com George Bergeman, The author of numerous software packages, George Bergeman has taught mathematics for more than 25 years His teaching career began at a small college in West Africa as a Peace Corps volunteer and continued at Northern Virginia Community College, one of the largest multi-campus colleges in the country Teaching awards include Faculty Member of the Year honors at his campus In an effort to enhance his instruction by incorporating computer support, George developed a small program for use in statistics classes Students and instructors responded positively, and in 1985, an expanded version was published along with an accompanying workbook Since then, George has developed a variety of software packages to accompany texts in statistics, calculus, developmental math, finite math, and—a special favorite—MathCue.Business for Robert Brechner’s Contemporary Mathematics for Business and Consumers By drawing on his teaching experiences and contact with students and faculty, George has endeavored to develop software that provides targeted, effective, and easy-to-use support for instruction George lives with his wife, Clarissa, near Washington, D.C They have one daughter, Jessy, who is currently in grad school in Colorado after previously working in San Francisco, Boston, and Brazil In his free time, George enjoys accompanying his wife and their dog, Anny, to dog shows Along those lines, and with Anny’s help, George and his wife produced a dog-sport training video that has been distributed in the United States and in parts of Europe Photo by Clarissa Bergeman author of CengageNOW™ featuring MathCue.Business A-20 APPENDIX A • ANSWERS TO ODD-NUMBERED EXERCISES 21 SECTION II 17.8 306.8 is the median 38 is the median 47% 11 21 is the mode in this set 13 Both and are modes in this set 15 199 17 2,179 19a Small van 86.8, Large van 140.6 19b Small truck 288, Large truck 339 19c 189 19d 238 19e Both 86 and 290 are modes of this set of numbers 19f 293 21 SECTION III 1a Class 5–9 10–14 15–19 20–24 25–29 1b Class 5–9 10–14 15–19 20–24 25–29 Tally Frequency | |||| |||| | |||| || Frequency (f) Midpoint (m) f3m 18 Tally 12 17 22 27 48 102 110 54 321 | |||| |||| | |||| || 321 Mean 17.8 18 1c y Frequency 29 x 25 – 24 20 – 19 15 – 10 – 5– 14 Boats Manufactured 3a Class $4.00–4.99 $5.00–5.99 $6.00–6.99 $7.00–7.99 $8.00–8.99 $9.00–9.99 3b Class $4.00–4.99 $5.00–5.99 $6.00–6.99 $7.00–7.99 $8.00–8.99 $9.00–9.99 Tally |||| |||| | |||| ||| |||| |||| || Frequency 5 Tally Frequency ( f ) Midpoint (m) f3m |||| |||| | |||| ||| |||| |||| || 5 30 4.495 5.495 6.495 7.495 8.495 9.495 17.980 32.970 51.960 37.475 42.475 18.990 201.850 201.85 Mean $6.73 30 APPENDIX A • ANSWERS TO ODD-NUMBERED EXERCISES A-21 3c y Frequency 99 x $9 0 –$ 99 $8 0 –$ 99 $7 0 –$ 99 $6 0 –$ 99 –$ 0 $5 $4 0 –$ 99 Sales Receipts ASSESSMENT TEST 1a Sales ($1,000s) y 260 250 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 Apr New York California May June July Month Aug Sept x A-22 APPENDIX A • ANSWERS TO ODD-NUMBERED EXERCISES 1b Sales ($1,000s) y 260 250 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 Apr May June July Aug Sept Month New York California 3a Desktop computers: 50%, Notebook computers: 25%, Software: 10%, Printers: 12.5%, Accessories: 2.5% 3b 10% Software 25% Notebook computers 12.5% Printers es 2.5% Accessori 50% Desktop computers 5a Range: 78, Mode: 72 5b Class 11–20 21–30 31–40 41–50 51–60 61–70 71–80 81–90 91–100 Tally | | | || |||| |||| |||| |||| |||| |||| |||| | Frequency 1 10 10 x APPENDIX A • ANSWERS TO ODD-NUMBERED EXERCISES 5c A-23 Frequency ( f ) Midpoint (m) f m 15.5 15.5 25.5 25.5 35.5 35.5 45.5 91.0 55.5 222.0 65.5 327.5 10 75.5 755.0 10 85.5 855.0 95.5 573.0 40 2,900.0 2,900 Mean 72.5 40 Class 11–20 21–30 31–40 41–50 51–60 61–70 71–80 81–90 91–100 Tally | | | || |||| |||| |||| |||| |||| |||| |||| | 5d 14 5e y 10 Frequency 11–20 21–30 31–40 41–50 51–60 61–70 71–80 81–90 91–100 x Scores in Groups BUSINESSS MATH TIMES Brainteaser solutions page 90 A decimal point 1.2 page 190 20 nines page 306 24 days Appendix A page 408 Don’t forget 90, 91, 92 , 93, 99! 866 miles high Let X days worked Let (30 X) days not worked 55X 66(30 X) 924 X 24 Days If inches equals $1 million, then a foot equals $3 million A mile equals $15.84 billion (5,280 ft $3 million) 1,000 $1 trillion _ 63.13 miles 15.84 13.72 63.13 866.14 866 miles ( ) page 537 The room will be darkest at 1:11 and brightest at 10:08 A-24 APPENDIX A • ANSWERS TO ODD-NUMBERED EXERCISES page 644 page 767 $60 million 66 Let X Total taxes 1 X X X $25 million _ X $25 million X5 12 _ X $25 million X2 12 _ X $25 million 12 X $60 million The most common score (mode) was 90, so at least two scores were 90 The middle score (median) was 85, so at least one score was 85 The remaining two scores must be less than 85 The mean was 83; therefore, the sum of all five test scores was 415 (5 83) 415 2(90) 85 150 If one score was 84, the lowest possible score is 66 (150 84) INDEX A A.P Moller-Maersk Group, 88 Aamco Transmission, 585 AARP, 12, 103 AARP The Magazine, 103, 453 Abbreviations for invoices, 193 Accelerated cost recovery system (ACRS), 586 Accelerated depreciation, 576 Accounting equation, 488 Accounting Trends and Techniques, 577 Accrued interest, 693 Ace Hardware, 634 Acer, 22 Acid test ratio, 511 Actuaries, 646 Ad valorem tax, 610 Addends, Addition, of decimals, 70 of fractions, 40–45, 57 of mixed numbers, 43 of whole numbers, 7–9, 23 verification of, Add-on interest, 427 calculating the regular monthly payments of an installment loan by, 427–428 Adele Block-Bauer 1, 705 Adjustable-rate mortgages (ARM), 456–466, 477–478 calculating the interest rate of, 465–466 defined, 456 Adjusted bank balance, 108 Adjusted checkbook balance, 108 Adjustment period, 465 Advertising and display, 204 AFLAC, 647 Ahold USA, 179 Airbus, 76 Airports, 49 Alaska Department of Fish & Game, 28 Alaskan Fishing Boats, 28 Alimentation Couche-Tard, Inc., 561 Alpha Graphics, 144 Amazon.com, Inc., 238, 306 American Express Card, 291 American Institute of Certified Public Accountants (AICPA), 577 American Resort Development Association, 439 Amortization, 390–394, 400–401 asset, 593 defined, 390 Amortization payment calculating the amount of by table, 392 calculating by formula, 393–394 Amortization schedule, 460 of a mortgage, preparing a partial, 459–461 Amount, determining in increase or decrease situations, 174–177 finding the new after a percent change, 174–175 finding the original before a percent change, 176–177 Amount financed, 425 Annual life insurance premiums, 649, 656 Annual percentage rate (APR), 410 calculating by formula, 432–433 of an installment loan, 428–433 tables, 429–431, 433–434 Annual percentage yield (APY), 352 calculating, 351–352 defined, 352 Annual premiums for motor vehicle insurance bodily injury and property damage rates, 664 collision and comprehensive rates, 665 Annual rate, 351 Annual stockholders’ meeting, 489 Annuities certain, 373 Annuity, 372–401 complex, 373 contingent, 373 defined, 373 future value of, 373–379, 398–399 of $1 (Table), future value of an ordinary, 375–376 ordinary, 374 present value of, 382–388, 399–400 simple, 373 timeline illustrating present and future value of, 373 Annuity due, 373–379 calculating the future value of by formula, 378–379 calculating the future value of by using tables, 377–378 calculating the present value of by formula, 387–388 calculating the present value of by using tables, 384–386 defined, 474 formula, 378 Anxiety, overcoming, 90 Apple Inc., 534 APR See Annual percentage rate (APR) APY See Annual percentage yield (APY) Area rating, 656 Arithmetic mean, 737 calculating of ungrouped data, 737 ARM See Adjustable-rate mortgage (ARM) Assessed value, 610 Asset amortization, 593 Asset cost recovery systems, 586–591, 596 Asset turnover ratio, 512 Asset’s basis for depreciation, determining, 586–588 Assets, 488, 489–490 current, 489–490 intangible, 593 investments and other, 490 long-lived, 574 long-term, 574 on personal balance sheet, 13–14 tangible, 593 wasting, 590 Athleta, 423 ATM fees, 93 Auntie Anne’s, Inc., 451 Automated teller machines (ATMs), 92, 106 Automatic bill paying, 92 Automotive Parts Group, 230 AutoZone, 139 Average, 737 Average collection period, 511 Average cost, 540 Average cost method, 544 pricing inventory by, 544–545 Average daily balance, 415 calculating finance charge and new balance by using, 415–417 Average inventory, 556 Average monthly balance, 92 Average monthly utility bills, cities with highest, 169 Average mortgage rates, 82 Avis Budget Group, Inc., 584 B Babies “R” Us, 141 Back-end load, 700 Balance calculating new by using the average daily balance method, 415–417 calculating new by unpaid or previous month’s balance method, 411–415 Balance of business, calculating the new, 417–421 Balance sheet, 488–496, 520–521, 579 common-size, 492 components of, 489–492 defined, 488 horizontal analysis of, 494–496 personal, 13–14 preparing, 489–492 vertical analysis of, 492–494 Banana Republic, 423 Bank discount, 326 and proceeds for simple discount notes, calculating, 326 Bank of America, 316, 408 Bank of New York Mellon Corp., 123 Bank statement, 106 paper and electronic, 107 understanding of, 106 Bank statement reconciliation, 106–111, 116 form, 108 preparation of, 108–111 Bank Technology News, 92 Bank teller, 105 Banker’s rule, 310 Banking institutions, 308 Banking method, preferred, 92 Banks, 316 Banks and thrifts, largest U.S., 123 Bar chart, 724 comparative, 724, 725 component, 725 reading and constructing, 724–729 standard, 724 Barnes & Noble, 306 Base, 177 defined, 161 solving for, 166–167 Basis for depreciation, 586 determining the asset’s, 586–588 Bayliner, 332 Bed Bath & Beyond Inc., 143 Beginning inventory, 501 Beneficiary, 646 Berkshire Hathaway, 330 Berle, Milton, 190 Best Buy Co., Inc., 137, 539 Beverage Digest, 77 Billing cycle, 411 Bill of sale, 192 Biweekly mortgage payments, 464 Biweekly pay periods, prorating annual salary on the basis of, 266–267 Blank endorsement, 96, 97 defined, 96 Blu-ray discs, 87, 533 I-1 I-2 Boeing Company, The, 395 Bond(s), 690–696 calculating the cost of purchasing, 693–695 calculating the current yield of, 695–696 calculating the proceeds from the sale of, 694–695 callable, 691 convertible, 691 corporate, 362 defined, 690 junk, 693 municipal, 697 secured, 691 taxable or tax-free, 697–698 understanding, 690–693 unsecured, 691 Bond certificate, 691 Bond quotation table, reading of, 690–693 Bond rating, 693 Book inventory, 540 Book value, 490 defined, 574 Bookstores, 342 Boston Whaler, 332 Bottom line, 500, 503 Bounced check, 99 Bowflex, 440 Bridal Association of America, 170 Brokers discount, 685 full-service, 685 Buckeye Corporation, 450 Budgetary demands in a community, calculating tax rate necessary to meet, 613–614 Buffett, Warren, 330 Bureau of Labor Statistics (BLS), 53, 90, 168, 206, 272, 300, 368, 397 Burt & Associates, 531 Bush, Kurt, 65 Business, calculating the new balance of, 417–421 Business credit, 409–446 Business interruption insurance, 663 Business presentation programs, 728 Business problems solving other involving percents, 171–178, 183–184 using equations to solve, 124–148 using the percentage formula to solve, 161–167, 183–184 Business statistics, 717–755 defined, 718 Business Week, 488, 718 Business-related word problems, using equations to solve, 135–139, 147–148 Buying, volume, 204 C Cafeteria-style benefit program, 289 Calculated ARM interest rate, 466 Calculators, business, 158, 172 financial, 317 fraction key, 34 % key, 159, 162 scientific, 159, 172, 317 Calendar, days-in-a-year, 215 Callable bonds, 691 INDEX Canceled policies, refunds due on, 657–659 Cancellation, 49 Canon, 158 Capital, 490 working, 511 Capital gains, 705 Capital One Financial Corp., 123 Capital stock, 491 Capitalized cost, 453 reduction, 453 CarInsurance.com Premium Index, 664 Carolina Dodge Dealers 400, 65 Carpet and Rug Institute, 229 Carpet industry, U.S., 229 Carrier, 646 Cash discount period, 210 Cash discounts, 210–218, 223–224 calculating, 211–213 defined, 210 importance of, 211 Cash price, 425 Cash surrender option, 650 Cash value, 650 Casio, 158 CCH Inc., 625 Census of Business, 718 Census of the United States, 718 Centimeter, 69 Certified Management Accountant (CMA), 506 Certified Public Accountant (CPA), 506 Chain trade discount, 204 Champs Sports, 570 Channel of distribution, 199 position or level in, 204 Chaparral, 332 Charge accounts, 410–421, 444 CharlesSchwab, 686 Charts, 515 bar, 724–729 line, 720–724 pie, 730–732 Check, 93 defined, 92 endorsement of, 96–97 outstanding, 108 with stub, 94 writing in proper form, 95–96 Check register, 94, 100 defined, 93 using to record account transactions, 99–101 Check stub, 93 using to record account transactions, 99–101 with check, 94, 99 Checking accounts, 91–116 opening, 92–94 understanding and using, 92, 114–115 Chefs and cooks, 62 Chip rivalry, 178 Chocolate, Dove, 306 CIA World Factbook, 11 Circle K Stores, Inc., 561 Circular E: Employer’s Tax Guide, 277 Cirque du Soleil, 30 Citigroup Inc., 123, 316 Claims, 488 Classmates, 74 Closed-end credit, 425–436, 445–446 Closing, 457 calculating the amount due at, 462–465 Closing costs, 462 understanding, 462–465 Closing statement, 462 CNNmoney.com, 377 Coca-Cola Company, 77, 683 Coefficient, 126 Coinsurance clause, 659 Coinsurance, understanding, 659–660 Colbert, J B., 644 Cold Stone Creamery, Inc., 153 Collateral, 322 Collectibles, 705 College Board, The, Collision, 663 Combined wage bracket tables, 281 determining employee’s withholding using, 281–283 Commission, 270 draw against, 272 override, 271 salary plus, 272 straight and incremental, 270–271 Committee on Uniform Securities Identification Procedures, 682 Common denominator, 40 Common divisors, 35 Common factors, 35 Common fraction, 32 Common multiple, 37 Common stock, 679 distributing dividends on, 678–681 Common-size balance sheet, 492 Common-size income statement, 503 Comparative bar chart, 725 defined, 724 Compensation due, computing in the event of a loss, 659–660 computing following an accident, 666–667 Competition, 204 Complex annuity, 373 Complex fraction, 33 Component bar chart, 725 Composting and recycling, 138 Compound amount, 346 calculating using the compound interest formula, 352–353 computing using compound interest tables, 347–350 manually calculating, 346–347 Compound interest, 344–365 computing using compound interest tables, 347–350 defined, 308, 345 earned on $100 at 12%, 351 formula, calculating compound amount by using, 352–353 future value of $1 at, 348 manually calculating, 346–347 present value and future value at, 346 present value of $1 at, 358 table, 348 table factors, creating for periods beyond the table, 350–351 time value of money, 364–365 Compounding, 345 continuous, 356 daily, 356 Compounding periods per year, 349 Comprehensive, 663 defined, 664 Condominium insurance, 658 Conservative investments, 678 Constant dollar plan, 690 Constants, 125 Construction workers, 35 Consumer credit, 409–446 Consumer Credit Protection Act, 410 Consumer Financial Protection Bureau (CFPB), 472 Consumer Reports ShopSmart, 247 Contingent annuities, 373 Continuous compounding, 356 Conventional loans, 456 Convertible bonds, 691 Corporate bond quotation table, 693 Corporate bonds, 362 Corporate income tax, calculating after taxes, 629–630 Corporate Tax Rate Schedule, 629 Corporate yachts, 395 Cost calculating inventory rate at, 558–559 calculating percent markup based on, 235–236 calculating when selling price and percent markup based on cost are known, 236–237 calculating when selling price and percent markup based on selling price are known, 241–242 closing, 457 computing on a stock transaction, 685–687 markup based on, 233–240, 256–257 using the retailing equation to find, 233–235 Cost of goods sold, 501, 559 defined, 233 Cost ratio, 550 Cost recovery allowance, 586 Cost recovery percentage, 586 table MACRS, 587 Cost to retail price ratio, 550 Costco Wholesale, 176, 179 Counterfeit products, spotting, 250 Coupon rate, 691 Coverage ratio, 659 Coverdell Education Savings Accounts, 406 Craven, Ricky, 65 Credit business, 409–446 calculating personal line of, 417–421 calculating the potential amount of available to a borrower, 471–472 closed-end, 425–436, 445–446 consumer, 409–446 given for partial payment, calculating net amount due with, 213 line of, 410–421, 444, 471–473, 478–479 open-end, 410–421, 444 revolving, 411 Credit card rate disclosure indexed to U.S prime rate, Citibank, 420–421 Credit cards, 410–421, 444 penalty fee income, 449 reforms, 411 INDEX Credit limit, 471 Credit period, 210 Credit score, 422, 426 Credit unions, 315 Creditor, 488 Credits (bank statement), 106 Cumulative preferred stock, 679 Cumulative U.S bank failures, 113 Current assets, 489–490 Current liabilities, 490 Current ratio, 511 Current yield, 683 calculating of a bond, 695–696 calculating of a stock, 683–684 CUSIP number, 682 CVS Pharmacy, 209 Cyber backup, 103 D Daedalus, 395 Daily compounding, 356 Dairy Queen, 742 Darwin, Charles, 537 Data grouped, 743–746, 754–755 interpretation and presentation, 718–732, 751–753 presentation, 717–755 trend analysis chart and graph of financial, 514–515 ungrouped, 737–743, 753–754 Date discount, 210, 214–218 due, 210, 312 invoice, 210 loan, 312 maturity, 312 net, 210, 214–218 Dating EOM, 216–217 extra, Ex, or X, 218 methods, terms of sale, 216–218 ordinary, 216 proximo, 216–217 ROG, 217 Days of a loan, calculating the number of, 312 Days-in-a-year calendar, 215 De Vere, 439 Debentures, 691 Debit card, 92 Debits, 106 Debt-to-assets ratio, 512 Decimal number system, 2–5, 23 defined, Decimal numbers, 65 and fundamental processes, 70–73, 83–84 place value chart, 66 reading and writing, 65–67 rounding to a specified place value, 67–68 understanding of, 65–68, 83 Decimal point, 2, 65 Decimals, 64–84 addition and subtraction of, 70 converting fractions to, 79–80 converting to fractions, 78–79 converting to percents, 156–157 defined, 65 division of, 72–73 repeating, 80 multiplication of, 71–72 I-3 Declining-balance, 578 calculating depreciation by, 578–580 Decrease determining amounts in, 174–177 determining the rate of, 171–174 Decreasing term, 648 Deductible, 663 Deductions, 276 mandatory, 276 voluntary, 276 Deed, 462 Dell, Inc., 22 Delta Marine Industries, 395 Denny’s Corporation, 483 Denominator(s), 32 adding fractions with different, 42 adding fractions with same, 41 common, 40 determining the least common, 40–41 subtracting fractions with different, 44 Department of Energy (DOE), 54 Department of Housing and Urban Development (HUD), 456 Depletion, 590 Deposit slip, 94 defined, 93 preparing, 98–99 Depositor, 92 Deposits, 92 Deposits in transit, 108 Depreciation, 490, 573–596 basis for, 586 declining-balance method, 578–580 defined, 574 modified accelerated cost recovery system (MACRS), 586–590 straight-line method, 574–576 sum-of-the-years’ digits method, 576–578 traditional methods used for financial statement reporting, 574–582, 594–596 units-of-production method, 580–581 Depreciation expense, 574 Depreciation pie, 577 Depreciation schedule, 575 Depreciation system, MACRS property classes, 587 Descriptive statistics, 718 Difference, Differential piecework plan, 269 Digg, 74 Discount, 692 bank, 326 cash, 210–218, 223–224 chain trade, 204 financing dealers, 332–333 series trade, 204–207, 223 single equivalent discount, 206–207 single trade, 199–201, 222–223 Discount broker, 685 Discount date, 210 determining by using various dating methods, 214–218 Discount period, 328 Discounted note, timeline for, 328 Discounting a note, 328 before maturity, 327–329 Discounting, understanding, 325–330, 334 Discover Card, 291 Disney Enterprises, Inc., 160 Display, advertising and, 204 Distribution frequency, 743–746 position or level in the channel of, 204 Diversified portfolio, 678 Dividends, 17, 678 distributing on preferred and common stock, 678–681 Dividends in arrears, 679 Divisibility, rules of, 35 Division, 17 of decimals, 72–73 of mixed numbers, 51–52 of fractions, 51–52, 58 of whole numbers, 17–19, 24 shortcut, 18, 73 verification of, 17 Division line, 32 Division sign, 17 Divisor, 17 common, 35 greatest common, 35 Do it Best Corp., 152 Dollar-cost averaging, 690 Double-declining balance, 578 Dow Jones, 537, 681 Down payment, 425 Downtown Cookie Co., 160 Draft, 92 Draw against commission, 272 defined, 272 Drawing account, 272 Due date, 210, 312 Duane Reade, 209 Dun and Bradstreet, 510 E EADS, 76 Earnings Form 7004-SM, Request for Earnings and Benefit Estimate Statement, 281 gross, 266 net, 266 retained, 491 eBay, 306 E-commerce, 306 Economic Recovery Act of 1981, 586 Edison, Thomas, 190 Education e-books sale, 188 Edward Jones, 715 Effective interest rate, 327 calculating, 351–352 Effective rate, 352 Efficiency ratios, 510, 511–512 defined, 511 Einstein, Albert, 90 Electronic Boutique, 442 Electronic funds transfer (EFTs), 92 Employee federal income tax withholding (FIT), calculating by the percentage method, 278–280 gross earnings and incentive pay plans, 266–273, 295–296 paycheck, computing FICA taxes withheld from, 276–278 payroll deductions, 276–283, 296–297 total withholding for federal income tax, social security, and Medicare, determining using the combined wage bracket tables, 281–283 Withholding Allowance Certificate, W-4, 278 Employer FICA tax for, 286–288 fringe benefit expenses, calculating, 289–290 payroll expenses, 286–291, 297–298 Ending inventory, 501 estimating the value of by gross profit method, 552–553 estimating the value of by the retail method, 550–552 Endorsement, 96 blank, 96, 97 full, 97 restrictive, 97 space, 96 Endowment insurance, 648 Entrepreneur Magazine, 323, 355 Environmental Protection Agency, 138 EOM dating, 216–217 defined, 216 Equations, 125 key words and phrases for creating, 132 setting up and solving businessrelated word problems by using, 135–139 solving basic, 125–133, 146 solving for the unknown and proving the solution, 126–131 understanding the concept, terminology, and rules of, 125–126 using to solve business problems, 124–148 using to solve business-related word problems, 135–140, 147–148 writing from written statements, 132–133 Equifax, 422 Equities, 488 defined, 678 Equity, 490–491 owner’s, 488, 490, 492 stockholders’, 491, 492 ERA Motor Homes, 441 Escrow account, 461 Estimate, E-tail, 306 E-tailers, 306 Even division, 17 Exact interest, 309 Exchange Traded Funds (ETFs), 682 Excise taxes, 604–608, 633–634 calculating, 607–608 defined, 604 Exemptions, 278 Expenses, 500 operating, 233 Experian, 422 Expression, 125 writing from written statements, 132–133 Extended term insurance option, 650 External data, 718 Extra, Ex, or X dating, 218 Extra Space Storage Inc., 584 Exxon Mobil Corporation, 502 I-4 F F.O.B., 192 F.O.B destination, 192 F.O.B shipping point, 192 Face value, 646 Facebook, 27, 74 Fair Credit and Charge Card Disclosure Act, 410 Fair, Isaac and Company, 422 Fair Labor Standards Act, 267, 286 Fair market value, 610 Fast lube industry, 547 Federal Deposit Insurance Corporation (FDIC), 102, 110, 349 Federal Housing Administration (FHA), 456 Federal income tax (FIT), 278 determining employee’s withholding using the combined wage bracket tables, 281–283 Federal Insurance Contribution Act (FICA), 276 Federal Reserve Board, 428, 474 Federal Reserve Bulletin, 718 Federal Unemployment Tax Act (FUTA), 288 Federal unemployment taxes (FUTA), computing, 288 Federated Department Stores, Inc., 499 FedEx Express, 144 FedEx Freight, 228 FedEx Ground, 144 FedEx Kinko’s, 144 FedEx Office, 144 Fee, nonsufficient fund, 106 FICA tax computing, 276–278 for employers, 286–287 FICO scores, 422 Fidelity Invest Magellan Fund, 698 Finance charge, 410 calculating by the unpaid or previous month’s balance method, 411–415 calculating by using the average daily balance method, 415–417 calculating of, 417–421 Finance charge distribution, 435 Finance charge of an installment loan calculating by using the APR tables, 433–434 calculating the amount of, 425–427 Finance charge rebate, 434 calculating by using the sum-of-thedigits method, 434–436 Financial analysis, 488 Financial data, preparing a trend analysis chart and graph of, 514–515 Financial position, 488 Financial ratios, 487–524 and trend analysis, 510–515, 523–524 calculating, 510–513 defined, 510 Financial reform law, 2010, 472 Financial risk, 678 Financial statements, 487–524 defined, 488 personal, 14 INDEX traditional depreciation methods used for reporting, 574–582, 594–596 Fire insurance, 656 annual premiums, 656 premiums, calculating, 655–657 First-in, first-out (FIFO) method, 540, 541 defined, 540 pricing inventory by, 540–542 529 Savings Plans, 406 Fixed-rate mortgages, 455–479, 477–478 calculating the monthly payment and total interest paid on, 457–459 Flexible benefit program, 289 Flow of costs, 540 Flow of goods, 540 Food Marketing Institute, 202 Foot Locker, Inc., 570 Footaction, 570 Forbes, 488, 718 Ford, 691 Form 1040, U.S Individual Income Tax Return, 616, 626–627 Form 1040A, short form, 616 Form 1040ES, Quarterly Estimated Tax Payment Voucher, 290 Form 1040EZ, short form, 616 Form 4868, Application for Automatic Extension of Time to File U.S Individual Income Tax Return, 642 Form 7004-SM-Request for Earnings and Benefit Estimate Statement, 281 Formula, 125 adjustable-rate mortgages, 477 amortization, 393–394, 398 bonds, 706 calculating APR by, 432–433 cash discounts and terms of sale, 222 closed-end credit, 443 commission, 295 community tax rate, 633 compound interest, 352–353, 364 declining-balance method, 594 discounting a note before maturity, 333 efficiency ratios, 520 fixed-rate mortgages, 477 fringe benefits, 295 future value of an annuity, 378–379, 398 grouped data, 751 home equity loans and lines of credit, 477 hourly wages, 295 income tax, 633 inventory estimation—gross profit method, 563 inventory estimation—retail method, 563 inventory turnover—cost, 563 inventory turnover—retail, 563 inventory valuation—average cost method, 563 invoice, 222 leverage ratios, 520 life insurance, 669 liquidity ratios, 520 MACRS depreciation, 594 markdown, 256 markup, 256 maturity value, 311 mutual funds, 706 natural resource depletion, 594 open-end credit, 443 payroll deductions, 295 percentage, 161–167, 182, 183 perishables, 256 piecework, 295 present value, 360–361, 364 present value of an annuity, 387–388, 398 profitability ratios, 520 property insurance, 669 property tax, 633 purchasing U.S Treasury bills, 333 quarterly estimated tax, 295 rate of change, 182 sales and excise taxes, 633 simple discount notes, 333 simple interest, 308–310, 316–321, 333, 335, 346 sinking fund, 392–393, 398 stocks, 706 straight-line method, 594 sum-of-the-years’ digits method, 594 target inventory, 563 trade discount—series, 222 trade discount—single, 222 ungrouped data, 751 units-of-production method, 594 Forrester.com, 92 Forrester Research, 306 Fortune, 488, 718 Four Seasons, 439 Fractions, 31–58 addition and subtraction of, 40–45, 57 common or proper, 32 complex, 33 converting decimals to, 78–79 converting improper to whole or mixed numbers, 33–34 converting percents to, 158–159 converting to decimals, 79–80 defined, 32 division of, 51–52, 58 improper, 32 like, 37, 41 multiplication of, 49–51, 58 raising to higher terms, 37 reducing to lowest terms, 35–36 types of, 32–33 understanding and working with, 32–37, 56 unlike, 42 Franklin, Benjamin, 604 Free Application for Federal Student Aid (FAFSA), 326 Frequency, 743 Frequency distribution, 743 constructing, 743–744 grouped data, 743–746, 754–755 preparing a histogram of, 745–746 relative, 750 Frequency table, 743 Fresh Del Monte Produce, 251 Fringe benefit expenses, calculating employer’s, 289–290 Fringe benefits, 286 Front-end load, 700 Fuel Economy Guide, 54 Full endorsement, 97 Full-service brokerages, 715 Full-service brokers, 685 Fundamental processes, decimal numbers and, 70–73, 83–84 Funds, sinking, 390–394, 400–401 Future amount calculating present value of by using the present value formula, 360–361 calculating the present value of by using present value tables, 357–359 Future value (FV), 346 and present value at compound interest, 346 calculating using the compound interest formula, 352–353 computing using compound interests tables, 347–350 manually calculating, 346–347 of $1 at compound interest, 348 present value to, 357 Future value of an annuity, 373–379 defined, 374 ordinary and annuity due, 373–379 timeline illustrating, 373 Future value of an annuity due, calculating by using tables, 377–378 Future value of an ordinary annuity calculating by formula, 378–379 calculating by using tables, 373–377 of $1 (Table), 375–376 G Gain (loss), computing on a stock transaction, 685–687 Gap, 423 Gartner, Inc., 22 Gas pricing, fractions and, 42 General Electric, 629 General Nutrition Centers, Inc., 203 Genuine Parts Company, 230 GI Bill of Rights, 456 GI Loan, 456 Goods perishable, 251, 258–259 seasonal, 249 staple, 249 Goods sold, cost of, 233 Grade point average (GPA), 741 Graph, 720 of financial data, 514–515 Great Recession, 285, 382, 408 Greatest common divisor, 35 reducing fractions by, 36 Greatschools.org, 130 Griffith, Joe, 644 Gross, 501 Gross earnings, 266 Gross margin, 501 Gross margin method, 552 Gross pay, 266 calculating by hourly wages, including regular and overtime rates, 267–268 calculating by straight and differential piecework schedules, 268–270 calculating by straight and incremental commission, salary plus commission, and drawing accounts, 270–273 Gross profit, 501 Gross profit margin, 513 INDEX Gross profit method, 552 estimating the value of ending inventory by, 552–553 Group insurance, 676 Grouped data, 743 calculating the mean of, 744–745 frequency distributions, 743–746, 754–755 Grouping symbols, 134 Guardian Life Ins Co of America, 647 H Hackler, Jim, 190 Half-year convention, 586 Haskins, Ernest, 408 Health care insurance, 651 Hershey Company, consolidated statements of income, 509 Hershey Company, The, 509 Hershey’s Bliss, 509 Hershey’s Kisses, 509 Hewlett-Packard, 22, 158 Hilton, 439 Hindu-Arabic numeral system, Histogram, 745 preparing a frequency distribution, 745–746 Holmes, Oliver Wendell, 604 Home Depot, 39, 539 Home equity lending, 472 Home equity line of credit, 471 Home equity loans, 471–473, 478–479 defined, 471 Home-based business, 663 Homeowner’s insurance, average annual expenditure for (1998–2010), 655 Horizontal analysis of a balance sheet, 494–496 of an income statement, 505–507 Horizontal bars, 726 Hotels.com, 21 Hourly rate, 267 Hourly wage, 267 Housing expense ratio, 472 calculating, 472–473 Howstuffworks.com, 539, 558 HSBC Holding, 123 Human resource managers, 294 Hyatt, 439 Hybrid vehicles/cars, 405, 765 I Ice Breakers, 509 Ice cream industry, 742 Identity theft, 537 Improper fraction, 32 converting mixed numbers to, 34 converting to whole or mixed numbers, 33–34 Impulse Research Corp., 160 Incentive pay plans, employee’s gross earnings and, 266–273, 295–296 Income before taxes, 501 net, 502 source for school districts, property taxes, 611 taxable, 616 I-5 Income-Based Repayment program, 326 Income shortfall, 652 calculating the amount of life insurance needed to cover dependents’, 652–653 Income statement, 500–507, 509, 521–522, 579 common-size, 503 components, 501–503 defined, 500 horizontal analysis of, 505–507 preparing, 500–503 vertical analysis of, 503–504 Income tax, 502, 616–624, 635–637 defined, 616 reporting, IRS prescribed methods for, 586–591, 596 Increase determining amounts in, 174–177 determining the rate of, 171–174 Incremental commission, 270–271 defined, 270 Index numbers, 514 Index rate, 465 Indianapolis Motor Speedway, 69 Industry Norms and Key Business Ratios, 510 Industry standards, calculating target inventories based on, 559–560 Industry trade group, 204 Infiniti, 706 Inflation, 397 factor, 363 Information, 718 from a table, reading and interpreting, 718–719 statistical, 723 Initial ARM interest rate, 466 Initial public offering (IPO), 686 Inspection, reducing fractions by, 35 Installment financing, 435 Installment loans, 425–436, 445–446 calculating the annual percentage rate by APR tables and by formula, 428–433 calculating the finance charge and monthly payment by using the APR tables, 433–434 calculating the regular monthly payment by the add-on interest method, 427–428 calculating the total deferred payment price and the amount of the finance charge of, 425–427 defined, 425 Institute of Management Accountants, 506 Insurance, 645–671 condominium, 658 defined, 646 endowment, 648 fire, 656 health care, 651 life, 646–653, 669–670 limited payment life, 648 motor vehicle, 663–667, 671 nontraditional, 648 permanent, 647 property, 651, 655–661, 670–671 renter’s, 658 term, 647 whole life, 648 Insurance agents, 655 Insurance Information Institute, 648, 656 Insured, 646 Insurer, 646 Intangible assets, 593 Integer, Interest accrued, 693 compound, 308, 345–353 defined, 308 exact, 309 ordinary, 310, 319 simple, 308 understanding and computing simple, 308–313 Interest rate of an adjustable-rate mortgage, calculating, 465–466 Interest-bearing promissory note, 325 Interest-rate caps, 466 Internal company sources, 718 Internal Revenue Service See IRS Inventory, 538–566 beginning, 501 calculating target based on industry standards, 559–560 defined, 539 ending, 501, 550–553 Inventory estimation, 550–553, 565 Inventory turnover, 512, 556 and targets, 556–560, 565–566 Inventory turnover rate calculating at cost, 558–559 calculating at retail, 557–558 Inventory valuation, 539–546, 563–564 Inventory pricing by FIFO method, 540–542 LIFO method, 542–544 lower-of-cost-or-market (LCM) rule, 545–546 using the average cost method, 544–545 Invert, 51 Investment Company Institute, 698 Investment side fund, 648 Investment trusts, 698 Investments, 677–709 calculating the return on, 702–703 conservative, 678 other assets and, 490 return on, 513 Investopedia.com, 682 Invoice, 192–196, 222 defined, 192 extending and totaling, 195–196 reading and understanding the parts of, 192–195 terminology and abbreviations of, 193 Invoice date, 193, 210 Invoice format, 193 Invoice subtotal, 195 Invoice total, 195 IRS, 266, 540 audits, 617 Circular E: Employer’s Tax Guide, 277 Form 1040 ES, Quarterly Estimated Tax Payment Voucher, 290 Form 4868, extension, 642 prescribed methods for income tax reporting, 586–591, 596 Publication 15-A: Employer’s Supplemental Tax Guide, 281 publication: 1040 Forms and Instructions, 617 Itasca Motor Homes, 441 IT expenditure, 67 J J.D Power and Associates, 405 Jani-King, 368 Javelin Strategy & Research Center, 537 Jiffy Lube International, 547 JP Morgan Chase, 316 Junk bonds, 693 K Kahala Corp., 153 KB Toys, 141 Keystone markup, 240 Keystoning, 240 KFC, 324 Kids Foot Locker, 570 Kit Kat, 509 Klimt, Gustav, 705 Kmart, 61, 209 Knowns, 125 Kraft Foods, 692 Kroger, 179, 209 L Lady Foot Locker, 570 Lapse, 650 Last-in, first-out (LIFO) method, 540, 542 defined, 542, 543 pricing inventory by, 542–544 Lauder, Ronald S., 705 Lease vs purchase, 453 LeaseTrader.com, 453 Least common denominators (LCDs), 40 Lending ratio guidelines, 473 Lenovo, 22 Level-payment plan, 459 Leverage ratios, 510 defined, 512 Liabilities, 488 and owner’s equity, 490–491 current, 490 long-term, 490 on personal balance sheet, 13–14 Liability, 663 Life insurance, 646–653, 669–670 calculating the amount needed to cover dependents’ income shortfall, 652–653 defined, 647 types of, 647–648 understanding, 647–650 Life insurance companies, top 10 by revenue, 647 Life insurance premium factors, 649 Lifetuner.org, 12 Like fractions, 37 defined, 41 subtraction of, 43–44 Limited payment life insurance, 648 LIMRA International, 646 Lincoln National, 647 Line chart, 720 multiple, 720 reading and constructing, 720–724 single, 720 I-6 Lines of credit, 410–421, 444, 471– 473, 478–479 calculating personal, 417–421 defined, 417 Link2Gov Corporation, 291, 632 Liquidity of investments, 678 Liquidity ratios, 510, 511 defined, 511 List price, 199 LLC, 47 Load, 700 Loan date, 312 Loans calculating the maturity value of, 311 calculating the number of days of, 312 conventional, 456 determining the maturity date of, 313 GI, 456 home equity, 471–473, 478–479 installment, 425–436, 445–446 involving partial payments before maturity, calculating, 319–321 secured, 411 unsecured, 411 with terms of days, calculating simple interest for by using the exact interest and ordinary interest methods, 309–310 with terms of years or months, computing simple interest for, 308–309 Long John Silver’s, 324 Long-lived assets, 574 Long-term assets, 574 Long-term liabilities, 490 Loss computing compensation due in the event of, 659–600 determining each company’s share when liability is divided among multiple carriers, 660–661 net, 502 profit or, 500 Lowe’s, 39, 539 Lower-of-cost-or-market (LCM) rule, 540 defined, 545 pricing inventory by, 545–546 M MACRS See Modified accelerated cost recovery system (MACRS) Macy’s, Inc., 262, 306 consolidated balance sheets, 499 Maersk Line, 88 Magic Triangle for remembering percentage formulas, 162 simple interest formula, 316 solving for principal, 316–317 solving for rate, 317 solving for time, 318 Mandatory deductions, 276 Margin, 233, 466, 501 Markdown, 247 computing the final selling price after a series of, 249–251 determining the amount of, 247–248 determining the sale price after, 248–249 INDEX determining the original price before, 249 multiple operations, and perishable goods, 247–252, 258–259 Markdown cancellation, 247 Markdown percent, determining the amount of, 247–248 Market research industry, 53 Markon, 233 Markup(s), 232–259 computing the final selling price after a series of, 249–251 defined, 233 keystone, 240 percent, 235–236, 240, 243–244 using the retailing equation to find amount of, 233–235 Markup based on cost, 235–237, 256–257 defined, 235 Markup based on selling price, 240–244, 257–258 defined, 240 Markup table, 235 Marriott International, Inc., 439 Massachusetts Mutual Life Insurance, 647 MasterCard, 13, 291 Math test tips, 90 Math Worksheet Center, 136 Mathematical symbols, 127 Maturity calculating loans involving partial payments before, 319–321 discounting notes before, 327–329 Maturity date, 312 of a loan, determining, 313 Maturity value, 311 formula, 311 of a loan, calculating, 311 M-Banking, 92 M-commerce, 306 top sites, 306 McDonald’s Corporation, 682 Mean, 737 calculating of grouped data, 744–745 Measures of central tendency and dispersion, ungrouped data, 737–740, 753–754 Median, 738 determine, 738–739 Medicare, determining employee’s withholding using the combined wage bracket tables, 281–283 Medicare tax, 277 Merchandise inventory, 539 Merita Bank of Finland, 306 Merrill Lynch, 715 MetLife, 647 Micrometer, 69 Micron, 69 Millimeter, 69 Minimum wage laws, 267 Minuend, Minus sign, MIT Sloan, 90, 306 Mixed decimals, 65 Mixed number, 32 addition of, 41–43 converting improper fractions to, 33–34 converting to improper fractions, 34 division of, 51–52 multiplication of, 49–51 subtraction of, 43–45 Mode, 739 determining, 739 Modified accelerated cost recovery system (MACRS), 574 calculating depreciation by, 586–590 cost recovery percentage table, 587 defined, 586 property classes general depreciation system, 587 Money, 408, 718 Money factor, 453 Monthly credit card statement, reformed, 412–413 Monthly Labor Review, 718 Monthly pay periods, prorating annual salary on the basis of, 266–267 Monthly payment of an installment loan calculating by the add-on interest method, 427–428 calculating by using the APR tables, 433–434 Monthly payments historical mortgage rates and, 457 to amortize principal and interest per $1000 financed, 458 Monthly PITI of a mortgage loan, calculating, 461–462 Months, simple interest formula, 308 Moody’s Investors Service, 693, 718 Morgan Stanley Smith Barney, 715 Mortality charge, 648 Mortgage brokers, 475 Mortgage discount points, 457 Mortgage loan, calculating the monthly PITI of, 461–462 Mortgage payments, biweekly, 464 Mortgage rates and monthly payments, historical, 457 Mortgage shopping worksheet, 463–464 Mortgages, 390, 455–479 adjustable-rate, 456–466, 477–478 defined, 425, 456 fixed-rate, 456–466, 477–478 Motor vehicle insurance, 663–667, 671 annual premiums for bodily injury and property damage rates, 664 annual premiums for collision and comprehensive rates, 665 defined, 663 understanding, 663–666 Movie theaters, 600 Multiple carriers, 660 determining each company’s share of loss when liability is divided among, 660–661 Multiple line chart, 720 Multiplicand, 14 Multiplication, 14 of decimals, 71–72 of fractions, 49–51, 58 of mixed numbers, 50–51 of whole numbers, 14–16, 24 shortcut, 15, 71 Multiplier, 15 Municipal bonds, 406, 697 Municipal solid waste (MSW), 138 Munis, 406 Mutual Fund Quotation Table, 699 reading, 698–700 Mutual funds, 698–705, 708–709 calculating the net asset value of, 701 calculating the number of shares purchased of, 701–702 defined, 698 understanding, 698–700 MySpace, 74 N NAPA Auto Parts Stores, 230 NASCAR, 65 NASDAQ, 716 National Association of Chain Drug Stores (NACDS), 209 National Association of College Stores, 342 National Association of Home Builders (NAHB), 62 National Credit Union Administration, 315 National Housing Act of 1934, 456 National Marine Manufacturers Association, 332 National Pet Owners, 75 National School Lunch Act, 78 National School Lunch Program (NSLP), 78 National Taxpayers Union, 612 Natural resources, 590 calculating the periodic depletion cost of, 590–591 Nautilus, Inc., 440 Net, 501 Net amount, 211 Net amount due, calculating, 211–213 calculating with credit given for partial payment, 213–214 Net asset value (NAV), 700 of a mutual fund, calculating, 701 Net date, 210 determining by using various dating methods, 214–218 Net earnings, 266 Net income, 502, 542 Net income tax, calculating after taxes, 629–630 Net loss, 502 Net pay, 266 Net price, 199 calculating by using a series of trade discounts, 204–205 calculating by using the net price factor, complement method, 199–200 of a series of trade discounts, calculating by using the net price factor, complement method, 205–206 Net price factor, 200 Net profit, 502 Net profit margin, 513 Net sales, 559 Net worth, 490, 491 on personal balance sheet, 13–14 Netflix, Inc., 533 New York Life Insurance, 647 Newspaper circulation, 145 Nominal rate, 351 INDEX Nonforfeiture options, 650 calculating the value of various, 650–652 defined, 650 Nonsufficient fund (NSF) fee, 106 Nontraditional insurance, 648 No-par value stock, 679 Northwestern Mutual, 647 Notes, discounting before maturity, 327–329 NPD Group, 80 Numbers decimal, 65 mixed, 32 prime, 40 rounded, whole, 1–24 Numerator, 32 Nuptial numbers, 170 O Obama, Barack, 163, 326 Odd lot, 685 Odd pricing, 234 Offer price, 700 OfficeMax, 144 Official Payments Corporation, 291, 632 Old Age, Survivors, and Disability Insurance (OASDI), 277 Old Navy, 423 Online banking, 92 Online retailers, 306 Online sales, 306 Open-end credit, 410–421, 444 defined, 410 Operating expenses, 233 total, 501 Operating statement, 500 Opportunity cost, 123, 434, 453 Ordinary annuity, 373–379 calculating the future value of by formula, 378–379 calculating the future value of by using tables, 373–377 calculating the present value of by formula, 387–388 calculating the present value of by using tables, 384–386 defined, 374 formula, 378 of $1, future value of, 375–376 of $1, present value of, 385–386 Ordinary dating, 216 Ordinary interest, 319 defined, 310 Original basis, 574 Original price, finding before a markdown, 249 Outsourcing, 268 Outstanding checks, 108 Outstanding shares, 686 Overall rate caps, 466 Overdraft fees, 100 Overhead, 233 Override commissions, 271 Overtime, 267 Owner’s equity, 490, 492 defined, 488 liabilities and, 490–491 Ownership rights, 650 Ownership share, 678 I-7 P Par value, 679 Parentheses, 130 rule, 130–131 Partial payment, 213 calculating net amount due with credit given for, 213–214 timeline, 320 Pay gross, 266, 267–270 net, 266 take-home, 266 Payee, 92 Payments, tax, 628 Payoff, calculating for loans paid off early by using the sum-of-thedigits method, 434–436 Payor, 92 Payroll, 265–298 employee’s deductions, 276–283, 296–297 Payroll deductions married, paid weekly, 282 Medicare tax, 277 single, paid monthly, 283 Pell Grant, 326 Pennzoil-Quaker State Co., 547 Penske Truck Leasing, 584 Pepsi, 77 Percent change finding the new amount after, 174–175 finding the original amount before, 176–177 Percent markup based on cost, converting to percent markup based on selling price, 243 based on selling price, converting to percent markup based on cost, 243–244 calculating based on cost, 235–236 calculating based on selling price, 240–241 Percent method, calculating sales tax by, 606 Percent sign, 156 Percentage, 161 Percentage formula Magic Triangle for remembering, 162 solving for principal, 316–317 solving for rate, 317–318 solving for time, 318 using to solve business problems, 161–167, 182, 183 Percentage method, 278 amount for one withholding allowance, 278 calculating an employee’s federal income tax withholding (FIT) by, 278–280 of withholding, tables for, 279 Percentage points, 177 understanding and solving problems involving, 177–178 Percents and their applications in business, 155–184 converting to decimals, 156–157 converting to fractions, 158–159 defined, 156 solving other business problems involving, 171–178, 183–184 understanding and converting, 156–159, 182 Periodic depletion cost of natural resources, calculating, 590–591 Periodic inventory system, 539 Periodic rate caps, 466 Perishable goods, 258–259 calculating the selling price of, 251–252 defined, 251 Perks, 289 Permanent insurance, 647 Perpetual inventory system, 540 Perquisites, 289 Personal financial statements, 14 Personal lines of credit, calculating, 417–421 Personal property, 610 Peter, Laurence J., 767 Pharmacy and drug store industry, 209 Phone service choices, U.S household’s, 220 Pie chart, 730 defined, 730 reading and constructing, 730–732 Piecework, 268 Piperlime, 423 PITI, 461 of a mortgage loan, calculating the monthly, 461–462 Pizza Hut, 324 Place value chart for whole numbers, Place value system, Plus sign, PNC Financial Services, 123, 316 Policy, 646 Policyholder, 646 Pools, 678 Porsche 911 Carrera GT2, 664 Portion, 177 defined, 161 solving for, 162–164 Postal and Business Services, 355 Powerboat sales, U.S., 332 Preferred banking method, 92 Preferred stock, 679 distributing dividends on, 678–681 Premium, 646, 692 annual fire insurance, 656 calculating, 648–650 calculating fire insurance, 655–657 calculating for short-term policies, 657–659 calculating for various types of policies, 647–650 calculating motor vehicle insurance, 663–666 Premium factor, 649 Present amount, 346 Present value (PV), 344–365 defined, 346 Present value and future value at compound interest, 346 Present value formula, calculating present value of a future amount by using, 360–361 Present value of $1 at compound interest, 358 Present value of a future amount calculating by using present value tables, 357–359 calculating by using the present value formula, 360–361 Present value of an annuity, 382–388, 399–400 defined, 383 timeline illustrating, 373 Present value of an annuity due calculating by formula, 387–388 calculating by using tables, 384–386 Present value of an ordinary annuity calculating by formula, 387–388 calculating by using tables, 383–386 of $1 (Table), 385–386 Present value table, 357 calculating the present value of a future amount by using, 357–359 Present value table factors, creating for periods beyond the table, 359–360 Present value to future value, 357 Price cash, 425 purchase, 425 Price-earnings (PE) ratio, 684 of a stock, determining, 684–685 Prime number, 40 Principal, 308 solving for, 316–317 Private mortgage insurance (PMI), 456 Proceeds, 326, 685 computing on a stock transaction, 685–687 Producer Price Index (PPI), 206 Product, 15 Profit, 501 net, 502 Profit and loss statement, 500 Profit or loss, 500 Profitability ratios, 510, 513 defined, 513 Promissory note, 325 interest-bearing, 325 understanding, 325–330, 336 Proper fraction, 32 Property appraiser, 610 Property class, 586 Property insurance, 651, 655–661, 670–671 defined, 655 short-rate schedule, 658 understanding, 655–657 Property tax, 610–614, 634–635 calculating the amount of, 610–613 defined, 610 Property, plant, and equipment, 490 Proportion, 139 Prox, 216 Proximo, 216 dating, 216–217 Proxy statement, 489 Prudential Financial, 647 Public relations (PR), 735 Public Storage Inc., 584 Publix Super Markets, 179 Publication 15-A: Employer’s Supplemental Tax Guide, 281 Publicly held corporation, 678 Purchase price, 425 Purchase vs lease, 453 Q Qualifying ratios, 472 Quarterly estimated tax, calculating for self-employed persons, 290–291 I-8 Quarterly Estimated Tax Payment Voucher, Form 1040 ES, 290 Quick ratio, 511 Quicksilver Corporation, 450 Quotient, 17 R Radio frequency identification (RFID), 558 Raise to higher terms, 37 Ramada, 439 Range, 740 determining, 740 Rate, 154, 161, 308 coupon, 691 solving for, 164–166, 317–318 U.S prime, 417 Rate of change formula, 171, 182 Rate of increase or decrease, determining, 171–174 Rating factor discounts, 666 Rating factors, 665 Ratio, 139, 510 acid test, 511 and proportion problems, understanding and solving, 139–140 asset turnover, 512 calculating financial, 510–513 cost, 550 cost to retail price, 550 coverage, 659 current, 511 debt-to-assets, 512 efficiency, 510, 511–512 financial, 487–524 housing expense, 472 lending guidelines, 472–473 leverage, 510, 512–513 liquidity, 510, 511 price-earnings, 684 profitability, 510, 513 qualifying, 472 quick, 511 working capital, 511 Raymond James, 715 RBS WorldPay, Inc., 632 Real estate, 610 defined, 456 Real property, 610 Rebate fraction, 435 Reciprocals, 51 Recorde, Robert, 127 Recycling and composting, 138 Reduce to lowest terms, 35 Reduced paid-up insurance option, 650 Reese’s, 509 Refund due on canceled policies, 657–659 regular, 658–659 short-rate, 657–658 Regis Corporation, 323 Registered nurses (RNs), 300 Regular refund, 658–659 Relative frequency distribution, 750 Remainder, 9, 17 Renter’s insurance, 658 Repeating decimal, 80 Res summa, 70 Residual value, 453 defined, 574 INDEX Restrictive endorsement, 97 defined, 97 Retail, calculating inventory rate at, 557–558 Retail method, 550 estimating the value of ending inventory by, 550–552 Retail store managers, 198 Retailers, top U.S drug, 209 Retailing equation, 233 understanding and using to find cost, amount of markup, and selling price of an item, 233–235 Retained earnings, 491 Retirement age, revised, 382 Return on investment (ROI), 513, 702 calculating, 702–703 Return on investments, 678 Returned item, 106 Revenue, 500 defined, 500 top 10 life insurance companies by, 647 Revolving credit, 411 Rewards checking, 120 Risk financial, 678 shared, 646 vs return, 678 Rite Aid, 209 Robalo, 332 Roebuck and Co., 61 ROG dating, 217 defined, 217 Roosevelt, Theodore, 408 Root, 126 Round lot, 685 Rounded numbers, Rounding all the way, Rounding whole numbers, 4–5 Rule of 72, 351 Rule of 78, 434 Rules of divisibility, 35 S S corporation, 630 Safe-deposit boxes, 103 Safety of investments, 678 Safeway, 179, 209 Salary, 266 prorating annual, on the basis of weekly, biweekly, semimonthly, and monthly pay periods, 266–267 Salary plus commission, 272 Sale price, 247 determining after a markdown, 248–249 Sale, terms of, 210–218, 223–224 Sales charge and sales charge percents of a mutual fund, calculating, 700 Sales report, 719 Sales tax brackets, 605 Sales tax rate, 604 Sales tax tables, determining sales tax by, 604–605 Sales taxes, 604–608, 633–634 calculating amount of when total purchase price is known, 607 calculating by the percent method, 606 defined, 604 determining by sales tax tables, 604–605 Salvage value, 574 Satellite Radio, 208 Schwinn Fitness, 440 Scrap value, 574 Sea Ray, 332 Sears, 61, 550 Seasonal goods, 249 Second mortgages, home equity loans and lines of credit, 471–473, 478–479 Section 179 deductions, 588 table, 588 Secured bonds, 691 Secured loan, 411 Securities and Exchange Commission’s Investor Information Service, 699 Self-employed person calculating quarterly estimated tax for, 290–291 tax responsibility, 286–291, 297–298 Self-Employment Contributions Act (SECA), 287 Self-employment tax, 287–288 Selling price calculating amount of when total purchase price is known, 607 calculating percent markup based on, 240–241 calculating when cost and percent markup based on cost are known, 237 calculating when cost and percent markup based on selling price are known, 241 computing the final after a series of markups and markdowns, 249–251 markup based on, 240–244, 257–258 Selling price of an item, using the retailing equation to find, 233–235 Selling price of perishable goods, calculating, 251–252 Semimonthly pay periods, prorating annual salary on the basis of, 266–267 Series trade discount, 204 Service sector businesses, 11 Servicemen’s Readjustment Act, 456 Settlement statement, 462 7-Eleven, 251 Shared risk, 646 Shareholder, 678 Shares calculating the number purchased of a mutual fund, 701–702 defined, 678 outstanding, 686 Sharp, 158 Sheraton, 439 Shipping terms, 192, 195 Shopping centers, top U.S., 240 Shortcut, 162, 416 division, 18, 73 multiplication, 15, 71 Short-rate, 657 refund, 657–658 Short-term policy, 657 calculating premiums for, 657–659 Simple annuity, 373 Simple discount notes, 326 calculating bank discount and proceeds for, 326 calculating true or effective rate of interest for, 327 Simple interest, 308 calculating for loans with terms of days by using the exact interest and ordinary interest methods, 309–310 computing for loans with terms of years or months, 308–309 understanding and computing, 308–313, 334 Simple interest formula, 346 days, 312 using, 316–321, 335 years or months, 308–309 Single equivalent discount, 206 Single line chart, 720 Sinking fund payment calculating the amount of by table, 390–391 calculating by formula, 392–393 Sinking funds, 390–394, 400–401 defined, 390 Sir Speedy, 144 Sirius XM Radio, Inc., 208 Smart labels, 558 SmartMoney.com, 715 Social networking sites, top 5, 74 Social Security Administration, 281 Form 7004-SM-Request for Earnings and Benefit Estimate Statement, 281 Social Security tax (OASDI), 277 determining employee’s withholding using the combined wage bracket tables, 281–283 Solar Energy, 438 Solution, 126 Solve an equation, 125 Sovran Self Storage Inc., 584 Special depreciation allowance, 588–590 Specialty retailer, 203 Specific identification method, 540 Speculative investments, 678 SpendOnLife.com, 537 Spotting counterfeit products, 250 Spread, 466 Standard & Poor’s, 693, 718 Standard bar chart, 724 defined, 724 Staple goods, 249 Staples, 144 Starbucks, 518, 519 State Unemployment Tax Act (SUTA), 288 State unemployment taxes (SUTA), computing, 288 Statistical Abstract of the United States, 718 Statistical inference, 718 Statistical information, 723 Stock certificate, 679 defined, 678 Stock exchanges, 685 INDEX Stock Quotation Table, 681–683 Stock turnover, 556 Stockbroker’s commission, 685 Stockholders, 492 annual meeting of, 489 defined, 685 Stockholders’ equity, 491, 492 Stocks, 678–687, 706–707 calculating current yield for, 683–684 capital, 491 common, 679 defined, 678 determining the price-earnings ratio of, 684–685 distributing dividends on preferred and common, 678–681 preferred, 679 understanding, 678–681 Straight commission, 270–271 defined, 270 Straight piecework plan, 269 Straight-line depreciation method, 574 calculating depreciation by, 574–576 Structural class rating, 656 Student aid, 326 Subtraction, of decimals, 70 of fractions, 40–45, 57 of mixed numbers, 43–45 of whole numbers, 7, 9–10, 23 verification of, 9–10 Subtrahend, Sum, Summa, 70 Sum-of-the-digits method, 434 calculating depreciation by, 576–578 calculating the finance charge rebate and the payoff when a loan is paid off early, 434–436 Sum-of-the-years’ digits, 576 Sums, 70 SunTrust Banks, Inc., 123 Sunworkssolar.com, 438 Supercuts, 323 Supermarkets, top U.S., 179 Supervalu, 179, 209 Survey of Current Business, The, 510, 560, 718 Sutherland, Donald, 153 Sutherland, Susan, 153 Swapalease.com, 453 T Table(s), 554 annual percentage rate (APR), 429–431 combined wage bracket, 281 compound interest, 348 defined, 718 for percentage method of withholding, 279 future value of an ordinary annuity of $1, 375–376 present value, 358 present value of an ordinary annuity of $1, 385–386 reading and interpreting information from, 718–719 withholding, 282, 283 Taco Bell, 324 I-9 Take-home pay, 266 Tangible assets, 593 Target, 209, 252, 306, 541 Target average inventory, 559 Tax assessor, 610 Tax Computation Worksheet, 624 defined, 619 using to calculate tax liability, 625–627 Tax credits, 628 Tax facts, 644 Tax Freedom Day, 644 Tax Foundation, 605 Tax liability using the Tax Computation Worksheet to calculate, 625–627 using the Tax Table to determine, 619–624 Tax owed, calculating an individual’s amount of, 628–629 Tax Policy Center, 618 Tax rate, calculating to meet budgetary demands in a community, 613–614 Tax Reform Act of 1984, 586 Tax Reform Act of 1986, 586 Tax return, 616 calculating, 628–629 Tax Table, 620–623 defined, 619 using to determine tax liability, 619–624 Taxable bonds, 697–698 Taxable income, 616 calculating for individuals, 616–618 Taxation, 604 Taxes, 603–637 ad valorem, 610 excise, 604–608, 633–634 income, 502, 616–630, 635–637 income before, 501 other, 628 property, 610–614, 634–635 revenue from, 604 sales, 604–608, 633–634 Tax-free bonds, 697–698 T-bills, 329 Teaser rate, 466 Telemarketers, 301 Term, decreasing, 648 Term insurance, 648 Terminology for invoices, 193 Terms, 125 Terms of sale, 210–218, 223–224 dating methods, 216–218 defined, 210 timeline, 211 Tesla Roadster, 765 Texas Instruments, 68, 158 TIAA-CREF, 647 Time, 308 solving for, 318–319 Time value of money, 345–353 compound interest, 364–365 defined, 345 Timeline for discounted note, 328 for terms of sale, 211 illustrating present and future value of an annuity, 373 partial payment, 320 Times sign, 15 Timeshare, 439 Title, 462 Toshiba, 22 Total, Total cost, 574 Total deferred payment price of an installment loan, calculating of, 425–427 Total obligations, 472 ratio of a borrower, 472–473 Toy Industry, 141 Toy Industry Association, 141 Toys “R” Us, Inc., 141 Trade associations, 204 Trade channel, 199 Trade discount rate, calculating when list price and net price are known, 200–201 Trade discounts, 199 calculating the amount of by using a single equivalent discount, 206–207 series, 204–207, 223 single, 199–201, 222–223 Trade-in, 426 Trade-in value, 574 Traditional depreciation methods used for financial statement reporting, 574–582, 594–595 Transpose, 126 TransUnion, 422 Travel agents, 168 Trend analysis, 514 financial ratios and, 510–515, 523–524 Trend analysis chart of financial data, 514–515 Tropical storm force wind speed probabilities, 172 True interest rate, 327 True or effective rate of interest for a simple discount note, calculating, 327 True Value Company, 549 Truman, Harry, 78 Truth in Lending Act, 410, 426 Truth in Savings Law, 352 Twain, Mark, 767 Twitter, 74 Twizzlers, 509 Two-part process, 157 U U.S Bancorp, 123, 316 U.S bank failures, cumulative, 113 U.S Bond Market, 362 U.S Bureau of Labor Statics, 53, 90, 168, 206, 272, 300, 368, 397 U.S Department of Agriculture (USDA), 742 U.S Department of Commerce, 510 U.S Department of Education, 326 student aid programs, 326 U.S Department of Labor, 105, 168 U.S Department of Transportation, 194 U.S Environmental Protection Agency (EPA), 54, 138 U.S Federal Aviation Administration (FAA), 450 U.S Postal Service (USPS), 13, 767 U.S prime rate, 417 U.S rule, 319 U.S Treasury bills, 329 purchasing of, 329–330 UBS, 715 U-Haul International, 584 Ultralight aircrafts, 450 Underwriter, 646 Uneven division, 17 Ungrouped data, 743 measures of central tendency and dispersion, 737–740, 753–754 Units-of-production, 580 calculating depreciation by, 580–582 Universal Fitness, 440 Universal life, 648 Universal Product Code (UPC), 540, 558 Unknowns, 125 Unlike fractions, 42 subtraction of, 44 Unpaid or previous month’s balance method, calculating finance charge and new balance by, 411–415 Unsecured bonds, 691 Unsecured loan, 411 Unum Group, 647 UPS Store, 144, 355 Urban Institute, 177 USA Today, 12, 145 Useful life, 574 Utility bills, cities with highest average monthly, 169 V Variable life, 648 Variable/universal life, 648 Variables, 125 Verification of addition, 7–8 division, 17 multiplication, 16 subtraction, 9–10 Vertical analysis, 492 of a balance sheet, preparing, 492–494 of an income statement, 503–504 Vertical bars, 726 Veterans Affairs (VA) mortgage, 456 VetFran Program, 355 Video gaming sales, U.S., 245 Virtual safe-deposit boxes, 103 Visa, 13, 410, 411 VistaPrint, 144 Volume buying, 204 Voluntary deductions, 276 W W-4, Employee’s Withholding Allowance Certificate, 278 Wage base, 276 reaching the limit, 277–278 Wage laws, minimum, 267 Wages, 267 Walgreens, 209 Wall Street Journal Online, The, 681, 692 corporate bond quotation table, 693 mutual fund quotation table, 699 stock quotation table, 682 Wall Street Journal, The, 145, 417, 488, 684, 718 Walmart, 179, 209, 249, 306, 539, 682, 730 I-10 Wasting assets, 590 Week, The, 629 Weekly pay periods, prorating annual salary on the basis of, 266–267 Weighted average method, 544 Wells Fargo, 123, 316, 715 Whole Foods Market, 202 Whole life insurance, 648 Whole numbers, 1–24 addition of, 7–9, 23 converting improper fractions to, 33–34 defined, INDEX division of, 17–19, 24 multiplication of, 14–16, 24 place value chart, reading and writing, 2–4 rounding, 4–5 subtraction of, 9–10, 23 Wholesale Price Index, 206 Winnebago Industries, Inc., 441 Withholding allowances, 278 percentage method amount for one, 278–279 Withholding tables married, paid weekly, 282 single, paid monthly, 283 Withholdings, 276 tables for percentage method of, 279 Word problems, 8–9 using equations to solve business related, 135–140, 147–148 Working capital, 511 Working capital ratio, 511 Written statements, writing expressions and equations from, 132–133 Y Y-axis, 720 Years, simple interest formula, 308 Yum! Brands, Inc., 324 Z Zero Coupon Bonds, 406 X X-axis, 720 Xe.com, 89 ... organized by city, workplace, school, and region b What is the cost per stockholder? 22 According to the U.S Department of Education, 1,508,000 students were home-schooled in 2007 compared with... earbud/microphone for $23 a All considered, which model would be the least expensive choice? By how much? b For either cell phone choice, the monthly charge will be $34 per month with a $5 rebate if fewer... his wife, Clarissa, near Washington, D.C They have one daughter, Jessy, who is currently in grad school in Colorado after previously working in San Francisco, Boston, and Brazil In his free time,