Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 9th Edition Contemporary Mathematics f o r Bu sine ss a nd C o ns umers Robert Brechner and George Bergeman Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com 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 Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Contemporary Mathematics for Business and Consumers, 9th Edition Robert A Brechner, George W Bergeman Senior Vice President, Higher Ed Product, Content, and Market Development: Erin Joyner Vice President, Product Management: Mike Schenk © 2020, 2017 Cengage Learning, Inc Unless otherwise noted, all content is © Cengage ALL RIGHTS RESERVED No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S copyright law, without the prior written permission of the copyright owner Senior Product Director: Joe Sabatino For product information and technology assistance, contact us at Cengage Customer & Sales Support, 1-800-354-9706 Senior Product Manager: Aaron Arnsparger or support.cengage.com Senior Learning Designer: Brandon Foltz For permission to use material from this text or product, Senior Content Manager: D Jean Bora submit all requests online at www.cengage.com/permissions Product Assistant: Christian Wood Marketing Manager: Chris Walz Associate Program Manager, WebAssign: Jessica Galloway Library of Congress Control Number: 2018962212 ISBN: 978-0-357-02644-1 Associate Subject Matter Expert: Nancy Marchant Senior Digital Delivery Lead: Mark Hopkinson Production Service: SPi Global Designer: Chris Doughman Cengage 20 Channel Center Street Boston, MA 02210 USA Cover Image: Cico/ShutterStock.com Internal Image: spainter_vfx/Shutterstock.com Intellectual Property Analyst: Reba Frederics Intellectual Property Project Manager: Betsy Cengage is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world Find your local representative at www.cengage.com Hathaway Cengage products are represented in Canada by Nelson Education, Ltd To learn more about Cengage platforms and services, register or access your online learning solution, or purchase materials for your course, visit www.cengage.com Printed in the United States of America Print Number: 01 Print Year: 2019 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Contemporary Mathematics, 9e Real Business Real Math Real Life Contemporary Mathematics, 9e ercome helps students ov co d nfidently math anxiety an ness and master key busi at mathem ics concepts! F rom M otivation to M astery Brechner’s accessible and engaging style begins with a business-oriented review of basic math operations, including whole numbers, fractions, and decimals After students master these operations, they move to basic equations and their use in solving business problems These tools form a strong foundation enabling students to succeed as they study the wide range of business math topics presented in subsequent chapters S tep into the R eal B usiness W orld Brechner’s unique modular approach breaks each chapter into separate learning components, allowing you to customize the material and order of coverage to meet the specific learning needs of your students R eflecting the L atest in R eal B usiness Brechner incorporates numerous realistic and current problems that are designed to develop problem-solving and critical thinking skills • Coverage of personal finances addresses the newest ways to manage finances, including online bills and banking, debit cards, and e-management of accounts • Realistic business and government forms, checks, bank statements, financial statements, credit card statements, and invoices are featured throughout E nhance Y our L earning Built by educators and very widely used, the WebAssign course management system includes components that provide the tools you need to master topics in your course efficiently Features such as Read It, Watch It (videos by author George Bergeman), and Master It provide extra help if and when you need it • Stock, bond, and mutual fund tables are taken from The Wall Street Journal Online iii Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it A Proven Step-by-step Learning System Powers Learning Each chapter is broken into discrete performance objectives For each objective, the text guides students to mastery by way of a carefully designed learning system that includes these components: An E xplanation of the topic A S tep B ox clearly describing the solution steps An E xample with a complete step-by-step solution A T ry -I t E xercise with solution so students can immediately test their understanding iv Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Step into the Real Business World Special features engage students and connect business math topics to issues and concerns encountered in everyday life as well as in business settings I n T he B usiness W orld Useful and interesting notes provide connections to the real business world Many have useful information to help students manage their own personal finance situations L earning T ips Helpful mathematical hints, shortcuts, and reminders enhance students’ understanding of the chapter material B usiness P rofiles Accompanying selected exercises, photos and brief businessrelated profiles provide perspective, historical data, and other information to connect problems to the real world B usiness M ath J ournal Appearing every three chapters, these pages provide current news items, cartoons, famous business and inspirational quotes, career information, and many other interesting facts and figures related to business topics D ollars and S ense This feature stimulates student curiosity with current news items and statistics related to chapter topics “Dollars and Sense” provides students with numerous personal finance and business money tips v Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Additional Features and Tools Further Prepare You for the Real World E nd - of -C hapter F eatures • A Chapter Summary Chart provides a comprehensive review of each performance objective The chart emphasizes important chapter concepts, steps, formulas, and illustrative examples with worked-out solutions • Concept Review fill-in questions test students’ comprehension of the basic concepts and important vocabulary of each chapter Also at the end of each chapter… • An Assessment Test includes exercises with multiple parts that build on previous answers and previously-learned material to encourage critical thinking and problem-solving • A Collaborative Learning Activity provides practice working in teams while enhancing students’ comprehension of the chapter topics and their relevance in real-world scenarios S upplemental T ools • Jump Start Solutions provide worked-out solutions to the first question in each new topic set in the section exercises ã Excelđ Templates corresponding to problems in the text are presented at three levels of difficulty ã An Excelđ Guide and Workbook helps students learn spreadsheet basics for S tudents • Author Videos (new for this edition) by George Bergeman accompany each objective and walk students through detailed step-by-step solutions to sample problems • A Financial Calculator Guide and Workbook provides keystroke-by-keystroke instruction on using a business calculator Students access these tools by going to www.cengage.com/decisionsciences/brechner/cmbc/9e vi Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Acknowledgments Contemporary Mathematics for Business and Consumers benefited from the valuable input of instructors throughout the country We would like to especially thank those who responded to our questions about how they teach business math and those who reviewed various parts of the manuscript and/or allowed this book to be tested by their classes Reviewers: Alton Amidon, Pamlico Community College Carol Baker, Napa Valley Community College Sara Barritt, Northeast Community College Michael J Batali, Yakima Valley Community College Barry Bunn, Professor, Business, Valencia Community College J.D Dulgeroff, San Bernardino Valley Community College Celestino Caicoya, Miami Dade Community College Education Donna N Dunn, Beaufort County Community College Natalie Card, Utah Valley State College Michael E Durkee, San Diego Miramar Community College Jesse Cecil, College of the Siskiyou Leon G Bean, International Business College El Paso, Texas Janet P Ciccarelli, Professor, Herkimer County Community College Christine F Belles, Macomb Community College Milton Cohen, Fairfax Community Adult Education Acie B Earl, Black Hawk Community College Paul Grutsis, San Bernardino Valley College Julie Hall, Napa Valley Community College Giselle Halpern, El Camino Community College Ronnie R Hector, Briarcliff College John Heinsius, Modesto Junior College Susan Emens, Kent State University – Trumbull Campus Brenda Henry, McLennan Community College Gregory G Fallon, College of St Joseph in Vermont Jana Hosmer, Blue Ridge Community College F Bruce Creech, Sampson Community College Marty Franklin, Wilkes Community College George H Bernard, Professor, Seminole Community College Sue Courtney, Business Professor, Kansas City, Kansas Community College Robert S Frye, Polk State College Jan Ivansek, Lakeland Community College Tom Bilyeu, Southwestern Illinois College Samantha Cox, Wake Technical Community College Yvonne Block, College of Lake County Robert Bennett, Delaware County Community College Ellen A Benowitz, Mercer Country Community College Don Boyer, Jefferson College Cindy Brown, South Plains College Sylvia Brown, Mountain Empire Community College Steven Bruenjes, Dover Business College Ron Cooley, South Suburban College Rene Garcia, Miami-Dade Community College, Wolfson Campus Diane Jacobson, Ridley-Lowell Business & Technical Institute Ed Kavanaugh, Schoolcraft College Patricia Gardner, San Bernardino Valley College Toby F Deal, Patrick Henry Community College, Martinsville, VA Deanna R Knight, Daytona State College Glen Gelderloos, Grand Rapids Community College Frank DiFerdinando, Hudson County Community College Dr Harry T Kolendrianos, Danville Community College, Danville, VA Cecil Green, Riverside Community College Sky Kong, PRCC Stephen W Griffin, Tarrant County Junior College, South Campus Phil C Kopriva, San Francisco Community College District James Grigsby, Lake Sumter Community College Jeffrey Kroll, Assistant Professor, Brazosport College Mary Jo Dix, Jamestown Business College Elizabeth Domenico, Gaston College Gary M Donnelly vii Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Sherry Jones, Glenville State College Linda Mosley, Coordinator/Instructor of Business Programs, Tarrant County College, Southeast Campus Jeanette Landin, Empire College Kathleen A Murphrey, San Antonio College Janis Lawrence, Northwestern Business College Jack L Nelson, Ferris State University Marlyce Johnson, Milwaukee Area Technical College Rosemarie LeFebvre, Mohave Community College Darien Leiker, Coastal Bend College Pleasanton Campus Linda C Lohman, Jefferson Community and Technical College Diana Lee Lloyd, Hesser College David Loiacono, Benedictine University Joyellen Lottie, Glendale Community College Peter Lotto, Pikes Peak Community College David H Lydick, Paul D Camp Community College Paul H Martin, Business, Aim Community College, Greeley, CO Loretta A McAdam, Professor Information Systems, Business and Legal Studies, Seminole Community College Sharon M Meyer, Pikes Peak Community College Zo Miller, Rose State College Sakeena Mirza, Benedicine University Karen Mozingo, Pitt Community College Amy Perry Smith, Pearl River Community College Kent Smith, Texas State Technical College West Texas Wayne A Paper, Hawkeye Institute of Technology Natalie E Smith, Okaloosa Walton Community College Tatyana Pashnyak, Bainbridge College Louise M Stephens, Volunteer State Community College Richard P Paur, Milwaukee Area Technical College Cynthia Phipps, Lake Land College Lana L Powell, Valencia Community College Wayne Price, Napa Valley Community College Robert Reagan, Western Dakota Tech David Rice, Ilisagvik College Marvin Mai, Empire College Catherine Skura, Sandhills Community College Angela Nino, Richland College Pam Perry, Hinds Community College Gwendolyn Loftis, Rose State College Versha Shah, Montgomery County Community College Barbara Rosenthal, Miami-Dade Community College, Wolfson Campus Ben Sadler, Miami-Dade Community College, Wolfson Campus Carl J Sonntag, Pikes Peak Community College David D Stringer, DeAnza College Tyrrell Taplin, El Centro College Lynette Teal, Western WI Technical College Steven Teeter, Utah Valley State College Kari L Toms Randall Watts, Big Sandy Community and Technical College Charles Webb, Miami-Dade Community College, Wolfson Campus Kim Saunders, Tarrant County College Mark A Wells, Big Sandy Community & Technical College Charles R Shatzer, Solano College Andrea Williams, Shasta College Jane C Shatzer, Solano Community College Gregory J Worosz, Schoolcraft College Jo-Anne Sheehan, Briarcliffe College James T Yamamoto, Hawaii Business College Amy Shinoki, Kapiolani Community College Mary D Zajac, Montgomery County Community College Phone Survey Respondents: Jeffrey Abrams, Newport Business Institute Terry Alexander, Denver Technical College Charles Anderson, TN Technology Center at Livingston David Blum, Moraine Park Technical College Rita Boetell, Bakersfield College Barry Brandbold, Aaker’s Business College Norma Broadway, Hinds Community College Howard Bryan, Santa Rosa Junior College Bob Bulls, J.S Reynolds County College Roy Bunek, Fugazzi College Patricia Calloway, East Mississippi County College Lisa Campenella, ICSI (Allentown, PA) John H Carpenter, Polk Community College Roger D Chagnon, Jamestown Business College Victor Clearsuas, Holyoke Community College Carol Coeyman, Yorktown Business Institute George Converse, Stone Academy Ron Cooley, South Suburban College William S Dahlman, Premier Career College Nancy Degnan, Sawyer School Karen Desele, Gillette viii Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com A-24 Appendix A • Answers to odd-numbered exercises Sales ($1,000s) 1b 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 Tally Frequency 11–20 21–30 31–40 41–50 51–60 61–70 | | | || |||| |||| 1 71–80 |||| |||| 10 81–90 |||| |||| 10 91–100 |||| | Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com Appendix A • Answers to odd-numbered exercises 5c Class Tally Frequency (f) Midpoint (m) f×m 11–20 21–30 31–40 41–50 51–60 61–70 | | | || |||| |||| 1 15.5 25.5 35.5 45.5 55.5 65.5 15.5 25.5 35.5 91.0 222.0 71–80 |||| |||| 10 75.5 755.0 81–90 |||| |||| 10 85.5 855.0 91–100 |||| | 95.5 573.0 2,900.0 40 Mean = 5d 14 5e. A-25 327.5 2,900 = 72.5 40 10 Frequency 11–20 21–30 31–40 41–50 51–60 61–70 71–80 81–90 91–100 Scores in Groups B U S I N E S S S M AT H J O U R N A L Brainteaser solutions A P P EN D I X A page 94 A decimal point 1.2 page 195 20 nines Don’t forget 90, 91, 92 , 93, … 99! page 311 24 days Let X = days worked Let (30 – X) = days not worked 55X – 66(30 – X) = 924 X = 24 Days page 419 866 miles high If inches equals $1 million, then a foot equals $3 million A mile equals $15.84 billion (5,280 ft × $3 million) 1,000 b = 63.13 miles 15.84 13.72 × 63.13 = 866.14 = 866 miles page 551 Assuming the clock displays AM and PM rather than a 24-hour display, the2020 room willLearning be darkest at Reserved 1:11 and at scanned, 10:08 or duplicated, in whole or in part Copyright Cengage All Rights Maybrightest not be copied, $1 trillion = a WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it A-26 www.ebookslides.com Appendix A • Answers to odd-numbered exercises page 649 $60 million Let X = Total taxes 1 X = X + X + $25 million page 779 66 X= X + $25 million 12 X− X = $25 million 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) Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com Index A AAMCO Transmissions, 599 AARP, 106 AARP The Magazine, 106 Abbreviations for invoices, 198 Accelerated cost recovery system (ACRS), 600 Accelerated depreciation, 590 Accounting equation, 500 Accounting Trends and Techniques survey, 591 Accrued interest, 702 Ace Hardware, 641 Acid test ratio, 525 ACRS See Accelerated cost recovery system (ACRS) Actuaries, 651 Addends, Addition of decimals, 73 defined, of fractions, 41–47, 59–60 of mixed numbers, 44 verification of, 7–8 of whole numbers, 7–9, 24 Add-on interest calculating the regular monthly payments of an installment loan by, 437–438 defined, 437 Adjustable-rate mortgages (ARM), 468–478, 489–490 calculating the interest rate of, 477–478 defined, 468 Adjusted bank balance, 111 Adjusted checkbook balance, 111 Adjustment period, 477 Ad valorem tax, 624 Advertising and display, 210 AFLAC, 652 AICPA See American Institute of Certified Public Accountants (AICPA) Airbus, 79 Alaska Department of Fish & Game, 29 Alaskan Fishing Boats, 29 Alimentation Couche-Tard, Inc., 575 Alpha Graphics, 148 Amazon.com, Inc., 243 American Association of Retired Persons (AARP), 12 American Express Card, 296 American Institute of Certified Public Accountants (AICPA), 591 Amortization, 400–404, 411–412, 468 asset, 607 defined, 400 Amortization payment calculating by formula, 403–404, 412 calculating the amount by table, 401–402 Amortization schedule, 471 of a mortgage, preparing a partial, 471–473 Amount, determining in increase or decrease situations, 180–183 finding the new after a percent change, 181–183 finding the original before a percent change, 181–183 Amount financed, 436 Amount of an annuity, 382 Annual life insurance premiums, 654, 662 Annual percentage rate (APR) of an installment loan, 438–441 calculating by formula, 438–441 defined, 421 tables, 438–442 Annual percentage yield (APY) calculating, 357–358 defined, 357 Annual premiums for motor vehicle insurance bodily injury and property damage rates, 671 collision and comprehensive rates, 672 Annual rate, 357 Annual stockholders’ meeting, 501 Annuities certain, 381 Annuity, 380–412 complex, 381 contingent, 381 defined, 381 future value of, 381–387, 408 of $1 (Table), future value of an ordinary, 383–384 ordinary, 382 present value of, 391–397, 410 simple, 381 timeline illustrating present and future value of, 381 Annuity due, 381–387 calculating the future value by formula, 386–387, 410 calculating the future value by using tables, 385–386, 410 calculating the present value by formula, 396–397 calculating the present value by using table, 393–395, 410 formula, 386–387 Anxiety, overcoming, 94 A.P Moller–Maersk group, 91 Apple Inc., 547 APR See Annual percentage rate (APR) APY See Annual percentage yield (APY) Area rating, 662 Arithmetic mean, 748 ARM See Adjustable-rate mortgages (ARM) Assessed value, 625 Assets, 500 amortization, 607 basis for depreciation, determining, 600 cost recovery systems, 600–608, 610 current, 501–502 intangible, 607 investments and other, 502 long-lived, 588 long-term, 502, 588 on personal balance sheet, 13–14 replacing, 599 tangible, 607 wasting, 604 Asset turnover ratio, 526 Athleta, 433 ATMs See Automated teller machines (ATMs) Auntie Anne’s, Inc., 463 Automated teller machines (ATMs), 96 Automatic bill paying, 96 Automotive Parts Group, 235 Average, 748 Average collection period, 525 Average cost method, 554, 558 pricing inventory by, 558 Average daily balance calculating finance charge and new balance by using, 426–428 defined, 426 Average inventory, 571 Average monthly balance, 96 Average monthly utility bills, cities with highest, 175 Avis Budget Group, Inc., 598 B BAC See Bank of America Corp (BAC) Back-end load, 709 Baker, Lorenzo Dow, 256 Balance calculating new by unpaid or previous month’s balance method, 422–426 calculating new by using average daily balance method, 426–428 Balance of business, calculating the new, 428–431 Balance sheet, 500–509, 534–535, 593 common-size, 504 comparative, 506 components of, 501–504 defined, 500 horizontal analysis of, 506–509, 535 personal, 13–14 preparing, 501–504, 534 vertical analysis, 504–506, 535 Banana Republic, 433 Bank discount, 332 and proceeds for a simple discount note, 332 Banker’s rule, 315 Banking method, preferred, 96 Bank of America Corp (BAC), 126 Banks, 321 largest U.S., 126 Bank statement, 109 paper and electronic, 110 understanding of, 109–111 Bank statement reconciliation, 111–115, 119–120 form, 112 preparation of, 112–115 Bank teller, 108 Bar charts comparative, 733, 734, 737 component, 733, 734, 737 defined, 733 reading and constructing, 733–738 standard, 733, 736, 738 I-1 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com I-2 Base, 182 defined, 167 solving for, 172–173 Basis for depreciation, 600 determining the asset’s, 600 Bed Bath & Beyond Inc., 147 Beginning inventory, 514, 565 Beneficiary, 651 Best Buy Co., Inc., 141 Best Buy stock, 553 Billing cycles, 422 Bill of sale, 197 Biweekly payments, 476 Biweekly pay periods, prorating annual salary on the basis of, 271–272 Blank endorsement, 100 BLS See Bureau of Labor Statistics (BLS) Blu-ray discs, 90 Bond(s), 699–706, 716–717 calculating the cost of purchasing, 702–704 calculating the current yield of, 704 calculating the proceeds from the sale of, 702–704 callable, 699 certificate, 699 convertible, 699 corporate, 369 defined, 699 junk, 702 municipal, 706 quotation table, reading of, 699–702 secured, 699 taxable or tax-free, 706 understanding, 699–702 unsecured, 699 Bond rating, 702 Book inventory, 553 Bookstores, 348 Book value, 502 defined, 588 Bottom line, 513, 516 Bounced check, 102 Bowflex, 451 Bridal Association of America, 176 Brokers discount, 693 full-service, 693 Buckeye Corporations, 461 Budgetary demands in a community meet, 628–629 Bureau of Labor Statistics (BLS), 54, 94, 212, 375, 407 Burt & Associates, 545 Bush, Kurt, 68 Business calculating the new balance of, 428–431 credit, 420–457 interruption insurance, 669 presentation programs, 737 Business problems solving other involving percents, 177–183, 188–189 using the percentage formula to solve, 167–173, 188 Business-related word problems, using equations to solve, 139–144, 152–153 Business statistics, 726–767 defined, 727 Business Week, 500, 727 Buying, volume, 210 C Cafeteria style benefit program, 294 Calculated ARM interest rate, 477 Calculators, business, 164, 165 financial, 322 fraction key, 35 % key, 165, 168 scientific, 165, 322 Calendar, days-in-a-year, 220, 221 Callable bonds, 699 Cancelled policies, refunds due on, 663–665 Cancellation, 51, 52 Canon, 164 Capital, 502, 686 working, 524 Capital gains, 714 Capitalized cost, 464 reduction, 464 Capital stock, 503 Carolina Dodge Dealers, 68 Carpet and Rug Institute, 234 Carpet industry, U.S., 234 Carrier, 651 Cash discount period, 216 Cash discounts, 216–224, 228 calculating, 217–218 defined, 216 importance of, 217 Cash price, 436 Cash surrender option, 655 Cash value See Cash surrender option Casio, 164 Census of Business, 727 Census of the United States, 727 Centimeter, 72 Certified Management Accountant (CMA), 519 Certified Public Accountant (CPA), 519 Chain trade discount, 210 Channel of distribution, 204 position or level in, 210 Charge accounts, 421–431, 455 Charts, 528–529 bar, 733–738 line, 729–733 pie, 739–741 Check, 96 defined, 96 endorsement of, 99 outstanding, 111 with stub, 97 writing in proper form, 98–99 Checking accounts, 95–120 opening, 96–98 understanding and using, 96–98, 118–119 Check register, 97, 104 defined, 97 filled-out, 103 using to record account transactions, 103–105 Check stubs, 97 with check, 97, 104 using to record account transactions, 103–105 Chefs and cooks, 65 Chip and signature credit cards, 421 Chip rivalry, 186 Chocolate, Dove, 311 CIA World Factbook, 11 Circle K Stores, Inc., 575 Circular E, Employer’s Tax Guide, 282 Cirque du Soleil, 31 Citigroup Inc (C), 126 Claims, 500 Classroom activity, 695 Closed-end credit, 435, 456–457 formulas, 454 Closing, 468 calculating the amount due at, 474–478 Closing costs, 474 understanding, 474–478 Closing statement, 474 CMA See Certified Management Accountant (CMA) Coefficient, 130 Coinsurance clause, 665 Coinsurance, understanding, 665–666 Collateral, 328 Collectibles, 714 College Board, The, Collision, 670 Combined wage bracket tables, 286 determining employee’s withholding using, 286–288 Comcast Corporation, 522 Commission, 275, 693 draw against, 277 override, 276 salary plus, 277 straight and incremental, 275–276 Committee on Uniform Securities Identification Procedures (CUSIP), 690 number, 690 Common denominator, 41 Common divisors, 36 Common factors, 36 Common fraction, 33 Common multiple, 38 Common-size balance sheets, 504 Common-size income statement, 516 Common stock, 686 distributing dividends on, 686–689 Community tax rate, 640 Comparative balance sheet, 506 Comparative bar charts, 734, 737 defined, 733 Compensation due, computing following an accident, 673 Competition, 210 Complex annuities, 381 Index Complex fraction, 34 Component bar charts, 737 defined, 734 Composting and recycling, 142 Compound amount, 352 calculating using the compound interest formula, 358–359 computing using compound interest tables, 353–356 manually calculating, 352–353 Compounding, 351 continuous, 363 daily, 363 periods per year, 355 Compound interest, 350–372 computing using compound interest tables, 353–356 defined, 313, 351 earned on $100 at 12%, 357 formula, calculating compound amount by using, 358–359 future values of $1 at, 354 manually calculating, 352–353 present value of $1 at, 364 tables, 354 tables factors for periods beyond table, creating, 356–357 time value of money, 351–359, 371–372 Comprehensive, 670–671 defined, 670 Condominium insurance, 664 Conservative investments, 686 Constant dollar plan, 698 Constants, 129 Construction workers, 36 Consumer credit, 420–457 Consumer Credit Protection Act, 421 Consumer Financial Protection Bureau (CFPB), 484 Contingent annuities, 381 Continuous compounding, 363 Conventional loans, 468 Convertible bonds, 699 Convertible term, 653 Corporate bond, 369 quotation table, 702 Corporate income tax, calculating after taxes, 636–637 Corporate yachts, 405 Cost calculating inventory turnover rate at, 572–573 calculating percent markup based on, 240–241 calculating when selling price and percent markup based on cost are known, 241 calculating when selling price and percent markup based on selling price are known, 246–247 closing, 468 computing on a stock transaction, 693–695 markup based on, 239–242, 261–262 using the retailing equation to find, 239–240 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com Index Costco Wholesale Corporation, 182 Cost of goods sold, 514, 572 defined, 238 Cost ratio, 565 Cost recovery allowance, 600 Cost recovery percentage, 600 table MACRS, 601 Cost to retail price ratio See Cost ratio Counterfeit products, spotting, 255 Coupon rate, 699 Coverage ratio, 665 Coverdell Education Savings Accounts, 417 CPA See Certified Public Accountant (CPA) Craven, Ricky, 68 Credit, 111 business, 420–457 calculating personal line of, 428–431 calculating the potential amount of available to a borrower, 483–484 closed-end, 435–446, 456–457 consumer, 420–457 given for partial payment, calculating et amount due with, 218–219 lines of, 421–431, 455, 483–485, 490–491 open-end (See Open-end credit) revolving, 422 Credit Card Accountability, Responsibility, and Disclosure Act, 421, 460 Credit card rate disclosure indexed to U.S prime rate, Citibank, 434 Credit cards, 421–431, 455 parts of, 421 reforms, 422 Credit limit, 483 Creditor, 500 Credit period, 216 Credit score, 432, 436 Credit unions, 320 Cumulative preferred stock, 687 Current assets, 501–502 Current liabilities, 502 Current ratio, 524 Current yield, 691 calculating of a bond, 704 calculating of a stock, 691–692 CUSIP See Committee on Uniform Securities Identification Procedures (CUSIP) CVS pharmacy, 215 Cyber backup, 106 D Daily compounding, 363 Dairy Queen, 753 Data grouped, 754–756, 763, 766–767 interpretation and presentation, 727–733, 763–767 presentation, 726–767 trend analysis chart and graph of financial, 527–529 ungrouped, 747–751, 754, 763, 765–766 Date discount, 216, 220–224 due, 216, 317 invoice, 216 loan, 317 maturity, 317 net, 216, 220–224 Dating EOM, 222–223 extra, Ex, or X, 224 methods, terms of sale, 221–224 ordinary, 221–222 proximo, 222 ROG, 223 Days-in-a-year calendar, 220, 221 Days of a loan, calculating the number, 317 Debentures, 699 Debit card, 99 Debits, 111 Debt-to-assets ratio, 526 Debt-to-equity ratio, 526 Decimal numbers, 68 and fundamental processes, 73–81, 86–87 place value chart, 68 reading and writing, 68–70 rounding to a specified place value, 70–71 understanding of, 68–71, 86–87 Decimal number system, 2–5, 24 defined, Decimal point, 2, 68 Decimals, 67–87 addition and subtraction of, 73 converting fractions to, 82–83 converting to fractions, 81–82 converting to percent, 162–163 defined, 68 division of, 75–76 multiplication of, 74–75 repeating, 83 Declining-balance method calculating depreciation by, 592–594 defined, 592 Decrease determining amounts in, 180–183 determining the rate of, 177–180 Decreasing term, 653 Deductible, 670, 671 Deductions, 281 mandatory, 281 voluntary, 281 Deed, 474 Denny’s Corporation, 495 Denominator(s), 33 adding fractions with different, 43–44 adding fractions with same, 42–43 common, 41 determining the least common, 41–42 subtracting fractions with different, 45–46 Department of Housing and Urban Development (HUD), 468 Depletion, 604 Depositor, 96 Deposits, 96 Deposits in transit, 111 Deposit slips, 97 defined, 97 preparing, 102 in proper form, preparing, 101–102 Depreciation, 502, 587–610 basis for, 600 declining-balance method, 592–594 defined, 588 MACRS, 600–604 straight-line method, 588–590 sum-of-the-years’ digits method, 590–592 traditional depreciation— methods used for financial statement reporting, 588–596, 608–610 units-of-production method, 594–599 Depreciation expense, 588 Depreciation pie, 591 Depreciation schedule, 589 Depreciation system, MACRS property classes, 601 Descriptive statistics, 727 Difference, Differential piecework plan, 273 Digital radio See Satellite radio Discount broker, 693 Discount date, 216 determining by using various dating methods, 220–224 Discounting a note, 334 before maturity, 333–335, 339 Discounting, understanding, 331–336, 342 Discount period, 334 Discounts, 700 bank, 332 cash, 216–224, 228 chain trade, 210 financing dealer, 338–339 series trade, 210–213, 228 single equivalent discount, 212–213 single trade, 204–207, 228 Discover Card, 296 Disney Enterprises, Inc., 166 Display, advertising and, 210 Distribution frequency, 756–757 position or level in the channel of, 210 Diversified portfolio, 686 Dividends, 17, 686 distributing on preferred and common stock, 686–689 Dividends in arrears, 687 Divisibility, rules of, 36 Division of decimals, 75–76 defined, 17 of fractions, 53–54, 60 of mixed numbers, 53–54 shortcut, 17, 76 I-3 verification of, 17 of whole numbers, 17–19, 25 Division line, 33 Division sign, 17 Divisor, 17 common, 36 greatest common, 36 Do it Best Corp., 158 Dollar-cost averaging, 698–699 Double-declining balance, 592 Dow Jones, 691 Down payment, 436 Draft, 96 Draw against commission, 277 Drawing account, 277 Duane Reade, 215 Due date, 216, 317 Dun and Bradstreet, 523 E EADS, 79 Earnings Form 7004-SM, Request for Earnings and Benefit Estimate Statement, 286 gross, 271 net, 271 retained, 503 Economic Recovery Act, 600 Education e-books sale, 193 Effective interest rate, 333 calculating, 357–358 Effective rate, 357 Efficiency ratios, 523, 525–526, 537 defined, 525 EFTs See Electronic funds transfer (EFTs) Einstein, Albert, 94 Electronic Boutique, 453 Electronic funds transfer (EFTs), 96 Employee FIT, calculating by the percentage method, 283–285 gross earnings and incentive pay plans, 271–278, 300–301 paycheck, computing FICA taxes withheld from, 281–283 payroll deductions, 281–288, 301–302 total withholding for federal income tax, social security, and Medicare, determining using the combined wage bracket tables, 286–288 Withholding Allowance Certificate, W-4, 283 year-to-date earnings, 282 Employer FICA tax for, 291–293 fringe benefit expenses, calculating, 294–295 payroll expenses, 291–296, 302–303 Ending inventory, 514 estimating the value of by gross profit method, 567–568 estimating value of by retail method, 565–567 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com I-4 Endorsement, 99 blank, 100 full, 100 restrictive, 100 Endowment insurance, 653 Entrepreneur Magazine, 329, 375 Environmental Protection Agency, 142 EOM dating, 222–223 defined, 222 Equations, 129 accounting, 500 expression, 129 key words and phrases for creating, 136 setting up and solving business related word problems by, 139–143 solving basic, 129–153 solving for the unknown and proving the solution, 130–135 understanding the concept, terminology, and rules of, 129 using to solve business-related word problems, 139–144, 152–153 writing from written statements, 136–137 Equifax, 432 Equities, 500, 502–503, 686 owner’s, 500, 502 stockholders’, 503 Escrow account, 473 Estimate, Even division, 17 Even pricing, 239 Exact interest calculating, 315 defined, 314 Excise taxes, 618–624, 640–641 calculating, 621–622 defined, 618 Expenses, 513 operating, 238, 514 Experian, 432 Expression, writing from written statements, 136–137 Extended term insurance option, 655 External data, 727 Extra, Ex, or X dating, 224 Extra Space Storage Inc., 598 Exxon Mobil Corporation, 515 F Facebook, 28 Face value, 651 Factors, 15 Fair Credit and Charge Card Disclosure Act, 421 Fair, Isaac and Company, 432 Fair Labor Standards Act, 272, 291 Fair market value, 625 FDIC See Federal Deposit Insurance Corporation (FDIC) Federal aviation tax, 623 Federal Deposit Insurance Corporation (FDIC), 106, 355 Federal Housing Administration (FHA), 468, 484 Federal income tax (FIT), 283, 631 determining employee’s withholding using the combined wage bracket tables, 286–288 Federal Insurance Contribution Act (FICA), 281 computing, 281–283 for employers, 291–293 Federal Reserve Bank, 314 Federal Reserve Board, 438 Federal Reserve Bulletin, 727 Federal Unemployment Tax Act (FUTA), 293 FedEx Express, 148 FedEx Freight, 233 FedEx Ground, 148 FedEx Kinko’s, 148 FedEx Office, 148 Fee, nonsufficient fund, 111 FHA See Federal Housing Administration (FHA) FICA See Federal Insurance Contribution Act (FICA) FICO scores, 432 Fidelity Invest Magellan Fund, 707 FIFO method See first-in, first-out (FIFO) method Filled-out stub, check with, 103 Finance charge calculating by unpaid or previous month’s balance method, 422–426 calculating by using the average daily balance method, 426–428 calculating of, 428–431 defined, 421 distribution, 445 Finance charge of an installment loan calculating by using the APR tables, 439–441 calculating the amount of, 436–437 Finance charge rebate calculating using the sum-of-the digits method, 444–446 defined, 444 Financial analysis, 500 Financial calculator, 322 Financial data, preparing a trend analysis chart and graph of, 527–529 Financial position, 500 Financial ratios calculating, 524–527, 537 defined, 500, 523 and trend analysis, 523–529, 537–538 Financial reform law, 2010, 484 Financial risk, 686 Financial statements defined, 500 personal, 14 traditional depreciation— methods used for financial statement reporting, 588–596, 608–610 Fire insurance, 661 annual premiums, 662 premiums, calculating, 661–663 First-in, first-out (FIFO) method, 554, 555 defined, 554 pricing inventory by, 554–556 FIT See Federal income tax (FIT) 529 Savings Plans, 417 Fixed-income securities, 699 Fixed-rate mortgage, 468–478 calculating the monthly payment and total interest paid on, 469–471 Flash Crash, 711 Flexible benefit program, 294 “Floating decimal” option, 71 Flow of costs, 553 Flow of goods, 553 F.O.B., 197 F.O.B destination, 197 F.O.B shipping point, 197 Forbes, 500, 727 Ford, 700 Form 4868, Application for Automatic Extension of Time to File U.S Individual Income Tax Return, 647 Form 1040-ES, Quarterly Estimated Tax Payment Voucher, 295 Form 7004-SM-Request for Earnings and Benefit Estimate Statement, 286 Formula, 129 adjustable-rate mortgages, 489 amortization, 403–404, 409 bonds, 715 calculating APR by, 438–441 cash discounts and terms of sale, 228 closed-end credit, 454 commission, 300 community tax rate, 640 compound interest, 358–359, 371 declining-balance method, 608 discounting a note before maturity, 339 fixed-rate mortgages, 489 fringe benefits, 300 future value of an annuity, 386– 387, 408 grouped data, 763 home equity loans and lines of credit, 489 hourly wages, 300 income tax, 640 inventory estimation—gross profit method, 577 inventory estimation—retail method, 577 inventory turnover—cost, 577 inventory turnover—retail, 577 inventory valuation—average cost method, 577 invoice, 228 life insurance, 676 MACRS depreciation, 608 markdown, 261 markup, 261 maturity value, 316 Index mutual funds, 715 natural resource depletion, 608 open-end credit, 454 payroll deductions, 300 percentage, 167–173, 187, 188 percentage points, 187 perishables, 261 piecework, 300 present value, 367, 371 present value of an annuity, 396–397, 408 property insurance, 676 property tax, 640 purchasing U.S Treasury bills, 339 quarterly estimated tax, 300 rate of change, 187 sales and excise taxes, 640 simple discount notes, 339 simple interest, 313–314, 321–326, 339, 341, 352 sinking fund, 402–403, 408 stocks, 715 straight-line method, 608 sum-of-the-years’ digits method, 608 target inventory, 577 trade discount—series, 229 trade discount—single, 228–229 ungrouped data, 763 units-of-production method, 608 Forrester Research, 311 Fortune, 500, 727 Fractions, 32–57 addition and subtraction of, 41–47, 59–60 common or proper, 33 complex, 34 converting decimals to, 81–82 converting improper to whole or mixed numbers, 34–35 converting percent to, 164–165 converting to decimals, 82–83 defined, 33 division of, 53–54, 60 improper, 33 like, 38, 42 multiplication of, 51–54, 60 raising to higher terms, 38–39 reducing to lowest terms, 36–38 types of, 33–34 understanding and working with, 33–39, 58 unlike, 43 Franklin, Benjamin, 618 Free Application for Federal Student Aid (FAFSA), 332 Frequency, 754 Frequency distribution constructing, 754–755 defined, 754 grouped data, 754–756, 763, 766–767 preparing a histogram of, 756–757 relative, 762 Frequency table, defined, 754 Fresh Del Monte, 256 Fringe benefit, 291 expenses, calculating employer’s, 294–295 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com Index Front-end load, 709 Full endorsement, 100 Full-service broker, 693 Fundamental processes, decimal numbers and, 73–81, 86–87 Funds, sinking, 400–404, 411–412 FUTA See Federal Unemployment Tax Act (FUTA) Future amount calculating present value of, by using the present value formula, 367 calculating the present value of, by using present value tables, 364–365 Future value (FV), 352 of $1 at compound interest, 354 calculating using the compound interest formula, 358–359 computing using compound interest tables, 353–356 manually calculating, 352–353 present value to, 363 Future value of an annuity, 381–387, 408 defined, 382 ordinary and annuity due, 381–387 timeline illustrating, 381 Future value of an annuity due, calculating by using tables, 385–386 Future value of an ordinary annuity of $1 (Table), 383–384 calculating by formula, 386–387 calculating by using tables, 381–385 FV See Future value (FV) G Gain (loss), computing on a stock transaction, 693–695 Gap, 433 Garbage, 142 “Gatekeeper” subject, 134 General Nutrition Centers, Inc., 209 Genuine Parts Company, 235 GI Bill of Rights, 468 GI loans, 468 Goods perishable, 256, 263–264 seasonal, 254 staple, 254 Goods sold, cost of, 238 GPA See Grade point average (GPA) Grade point average (GPA), 752 Graph, 729 of financial data, 527–529 Greatest common divisor, 36 reducing fractions by, 37–38 Great Recession, 291, 419 Greatschools.org, 134 Gross, 514 Gross earnings, 271 Gross margin, 514 Gross margin method See Gross profit Gross pay, 271 calculating by hourly wages, including regular and overtime rates, 272–273 calculating by straight and differential piecework schedules, 273–275 calculating by straight and incremental commission, salary plus commission, and drawing accounts, 275–278 Gross profit, 514, 567 estimating the value of ending inventory by, 567–568 Gross profit margin, 526 Grouped data calculating the mean of, 755–756 defined, 754 frequency distribution, 754–756, 763, 766–767 Grouping symbols, 138 H Half-year convention, 600 Haskins, Ernest, 419 Health care insurance, 656 Health insurance, 294 Hewlett-Packard, 164 Hindu-Arabic numeral system, Histogram defined, 756 preparing a frequency distribution, 756–757 Holmes, Oliver Wendell, 618 Home-based business, 669 Home Depot, 40, 553 Home equity lending, 484 Home equity line of credit, 483 Home equity loans, 483–485, 490–491 defined, 483 Home Gym Nautilus, Inc., 451 Homeowner’s insurance, average annual expenditure, 2010, 661 Horizontal analysis of balance sheet, 506–509, 535 of income statement, 518–520, 536 Horizontal bars, 734 Hotels.com survey, 22 Hourly rate, 272 Hourly wage, 272 Housing expense ratio calculating, 484–485 defined, 484 Howstuffworks.com, 553, 572 HUD See Department of Housing and Urban Development (HUD) Human resource managers, 299 Hybrid vehicles, 417 Hypothetical Enterprises, Inc balance sheet, 505 financial ratios, 524–527 income statement, 513 trend analysis, 528–529 I Ice cream industry, 753 Identity theft fraud reports, types of, 551 Improper fraction, 33 converting mixed numbers to, 35–36 converting to whole or mixed numbers, 34–35 Incentive pay plans, employee’s gross earnings and, 271–278, 300–301 Income net, 515 source for school districts, property taxes, 626 taxable, 631 before taxes, 514 Income shortfall defined, 657 dependents’, 657–658 Income statement, 513–520, 535–536, 593 common-size, 516 components, 514–515 defined, 513 horizontal analysis of, 518–520 preparing, 513–516 vertical analysis of, 516–517 Income tax, 515, 631–637, 640, 642–643 defined, 631 reporting, IRS prescribed methods for, 600–608, 610 Increase determining amounts in, 180–183 determining the rate of, 177–180 Incremental commission, 275–276 defined, 275 Index numbers, 527 Index rate, 477 Indianapolis Motor Speedway, 72 Industry Norms and Key Business Ratios, 523 Industry standards, calculating target inventories based on, 573–574 Industry trade group, 210 Infiniti Corp., 715 Inflation, 407–408 factor, 370 Information, 727 statistical, 727, 728, 732 from a table, reading and interpreting, 727–728 Initial ARM interest rate, 477 Initial public offering (IPO), 694 Inspection, reducing fractions by, 36 Installment financing, 445 Installment loans, 436–437, 456–457 calculating the annual percentage rate by APR tables and by formula, 438–441 calculating the finance charge and monthly payment by using the APR tables, 443–444 I-5 calculating the regular monthly payment by the add-on interest method, 437–438 calculating the total deferred payment price and the amount of the finance charge of, 436–437 defined, 435 Institute of Management Accountants, 519 Insurance, 650–679 agents, 652, 657 condominium, 664 defined, 651 endowment, 653 fire, 661 health care, 656 life, 651–660, 676–679 limited payment life, 653 motor vehicle, 670–673, 678–679 nontraditional, 653 permanent, 652 property, 661–666, 677–678 renter’s, 664 term, 652–653 whole life, 653 Insurance Information Institute, 653 Insured, 651 Insurer, 651 Intangible assets, 607 Integer, Interest accrued, 702 compound, 313, 350–372 defined, 313 exact, 314 ordinary, 315 simple (See Simple interest) understanding and computing simple, 313–318 Interest-bearing promissory note, 331 Interest-rate caps, 478 Interest rate of an adjustablerate mortgage, calculating, 477–478 Internal company sources, 727 Internal Revenue Service (IRS), 271, 554, 636 Circular E, Employer’s Tax Guide, 282 Form 1040-ES, Quarterly Estimated Tax Payment Voucher, 295 prescribed methods for income tax reporting, 600–608, 610 Publication 15-A, Employer’s Supplemental Tax Guide, 286 Inventory, 553–582 beginning, 514 calculating target based on industry standards, 573–574 defined, 553 ending, 514, 565–568 estimation, 565–568, 579 valuation, 553–560, 577–578 Inventory pricing by average cost method, 558 by FIFO method, 554–556 by LCM rule, 559–560 by LIFO method, 556–558 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com I-6 Inventory turnover, 525, 571 and targets, 571–574, 579–580 Inventory turnover rate calculating at cost, 572–573 calculating at retail, 571–572 Invert, 53 Investment Company Institute, 707 Investments calculating the return on, 711–712 conservative, 686 and other assets, 502 return on, 527 side fund, 653 Investment trusts, 707 Investopedia.com, 690 Invoice, 197–201, 228 defined, 197 extending and totaling, 200–201 reading and understanding the parts of, 197–200 terminology and abbreviations of, 198 Invoice date, 198, 216 Invoice format, 198 Invoice subtotal, 200 Invoice total, 200 IPO See Initial public offering (IPO) IRS See Internal Revenue Service (IRS) Itasca Motor Homes, 452 IT spending, 70 J Jani-King, 375 JPMorgan Chase & Co (JPM), 126 Junk bonds, 702 K Keystone markup, 245 Keystoning, 245 KFC, 330 Kmart, 215 Knowns, 129 Kroger, 215 L Lapse, 655 Last-in, first-out (LIFO) method, 554 defined, 556, 557 pricing inventory by, 556–558 LCDs See Least common denominators (LCDs) LCM rule See Lower-of-cost-ormarket (LCM) rule LeaseTrader.com, 464 Lease vs purchase, 464–465 Least common denominators (LCDs), 41–42 Lender’s margin, 477 Lending ratio guidelines, 484 Level-payment plan, 471 Leverage ratios, 523, 537 Liabilities, 500, 670 current, 502 long-term, 502 and owner’s equity, 502 on personal balance sheet, 13–14 Life insurance, 651–660 calculating amount of insurance needed to cover dependents’, 657–658 companies, top 10 by revenue, 652 defined, 652 premium factors, 654 types of, 652–653 understanding, 652–653 LIFO method See Last-in, first-out (LIFO) method Like fractions, 38 defined, 42 subtraction of, 45 Limited payment life insurance, 653 LIMRA International, 651 Lincoln National, 652 Line chart defined, 729 reading and constructing, 729–733 Line of credit, 421–431, 455, 483– 485, 490–491 calculating personal, 428–431 defined, 428 Link2Gov Corporation, 296, 639 Liquidity of investments, 686 Liquidity ratios, 523, 537 defined, 523 List price, 204 Load, 709 Loan date, 317 Loans calculating the maturity value of, 316 calculating the number of days of, 317 conventional, 468 determining the maturity date of, 318 finding the rate, 323 finding the time period, 324 GI, 468 home equity, 483–485, 490–491 installment, 435–446, 456–457 involving partial payments before maturity, calculating, 325–326 secured, 422 with terms of days, calculating simple interest for by using the exact interest and ordinary interest methods, 314–316 with terms of years or months, computing simple interest for, 313–314 unsecured, 422 Long John Silver’s, 330 Long-lived assets, 588 Long-term assets, 588 Long-term capital gains, 714 Long-term liabilities, 502 Loss computing compensation due in the event of, 665–666 determining each company’s share when liability is divided among multiple carriers, 666–667 income tax, 515 profit or, 513 Lower-of-cost-or-market (LCM) rule, 554 defined, 559 pricing inventory by, 559–560 Lowe’s, 40, 553 M MACRS See Modified accelerated cost recovery system (MACRS) Macy’s, inc., 267 balance sheet, 512 Maersk Line, 91 Magic Triangle for remembering percentage formulas, 168 simple interest formula, 321 solving for principal, 322 solving for rate, 323 solving for time, 323–324 Mandatory deductions, 281 Margin, 238, 477, 515 Markdown, 252 computing the final selling price after a series of, 254–255 determining the amount of, 252–253 determining the original price before, 254 determining the sale price after, 253 multiple operations, and perishable goods, 252–256, 263–264 Markdown cancellation, 252 Markdown percent, determining the amount of, 252–253 Market research industry, 54 Markon, 238 Markup(s), 237–264 computing the final selling price after a series of, 254–255 defined, 238 keystone, 245 percent, 240–241, 247–248 using the retailing equation to find amount of, 239–240 Markup based on cost, 240–241, 261–262 defined, 240 Markup based on selling price, 245–249, 262–263 defined, 245 Markup table, 240 MasterCard, 14, 296 Mathematical symbols, 131 Math test tips, 94 Index Maturity calculating loans involving partial payments before, 325–326 discounting notes before, 333–335 Maturity date defined, 317 of loan, determining, 318 Maturity value defined, 316 formula, 316 of a loan, calculating, 316 McDonald’s Corporation, 705 Mean, 748, 777 calculation of grouped data, 755–756 Measures of central tendency defined, 747 and dispersion, ungrouped data, 747–751, 754, 763, 765–766 Median defined, 748 determining, 748–750 Medicare, determining employee’s withholding using the combined wage bracket tables, 286–288 Medicare tax, 282 Merchandise inventory, 502, 515, 553 MetLife, 652 Micrometer, 72 Micron, 72 Millimeter, 72 Minimum wage laws, 272 Minuend, Minus sign, MIT Sloan, 94, 311 Mixed decimals, 68 Mixed number addition of, 42–44 converting improper fractions to, 34–35 converting to improper fractions, 35–36 defined, 34 division of, 53–54 multiplication of, 51–54 subtraction of, 44–47 Mode defined, 750 determining, 750 Modified accelerated cost recovery system (MACRS), 588 calculating depreciation by, 600–604 cost recovery percentage table, 601 defined, 600 property classes general depreciation system, 601 Money, 419, 727 money.cnn.com, 385 Money factor, 464 Monthly credit card statement, reformed, 422 Monthly Labor Review, 727 Monthly payment of an installment loan calculating by the add-on interest method, 437–438 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com Index calculating by using the APR tables, 444 Monthly payments historical mortgage to amortize principal and interest per $1000 financed, 470 rates and, 469 Monthly pay periods, prorating annual salary on the basis of, 271–272 Monthly PITI of a mortgage loan, calculating, 473–474 Months, simple interest formula, 313–314 Moody’s Investors Service, 702, 727 Mortality charge, 653 Mortgage Bankers Association, 483 Mortgage brokers, 487 Mortgage discount points, 468 Mortgage loan, 468 calculating the monthly PITI of, 473–474 Mortgage rates and monthly payments, historical, 469 Mortgages, 400, 467–491 adjustable-rate, 468–478, 489–490 defined, 435, 468 fixed-rate, 468–478, 489–490 payments, biweekly, 476 shopping worksheet, 474–476 Motor vehicle insurance, 670–673 annual premiums for bodily injury and property damage rates, 671 annual premiums for collision and comprehensive rates, 672 defined, 670 understanding, 670–672 MSW See Municipal solid waste (MSW) Multiple carriers, 666 determining each company’s share when liability is divided among multiple carriers, 666–667 Multiple-line chart, 729, 732 Multiplicand, 15 Multiplication of decimals, 74–75 defined, 15 of fractions, 51–54, 60 of mixed numbers, 52 shortcut, 15–16, 74 verification of, 16–17 of whole numbers, 15–17, 25 Multiplier, 15 Municipal bonds, 417, 706 Municipal solid waste (MSW), 142 Munis, 417 Mutual Fund Quotation Table, reading, 707–708 Mutual funds, 707–708, 717–718 calculating the net asset value of, 710 calculating the number of shares purchased of, 710–711 defined, 707 understanding, 707–708 N NAPA Auto Parts Stores, 235 NASCAR, 68 National Housing Act of 1934, 468 National Marine Manufacturers Association, 339 National School Lunch Program (NSLP), 81 National Taxpayers Union, 626 Natural resources, calculating the periodic depletion cost of, 604–605 Nautilus, Inc., 451 NAV See Net asset value (NAV) Net, 515 Net amount, 217 Net amount due, calculating, 217–218 calculating with credit given for partial payment, 218–219 Net asset value (NAV), 709 of a mutual fund, calculating, 710 Net date, 216 determining by using various dating methods, 220–224 Net earnings, 271 Netflix, Inc., 547 Net income, 515, 555 Net income tax, calculating after taxes, 637 Net loss, 515 Net pay, 271 Net price, 205 calculating by using a series of trade discounts, 210–211 calculating by using the net price factor, complement method, 205–206 of a series of trade discounts, calculating by using the net price factor, complement method, 211–212 Net price factor, 205 Net profit, 515 Net profit margin, 527 Net sales, 565, 573 Net worth, 502 on personal balance sheet, 13–14 New federal debit card, 99 New York life, 652 Nominal rate, 357 Nonforfeiture options, 655 calculating value of various, 655–657 defined, 655 Nonsufficient fund (NSF) fee, 111 Nontraditional insurance, 653 No-par value stock, 687 Northwestern Mutual, 652 Notes, discounting before maturity, 333–335 NSLP See National School Lunch Program (NSLP) Numbers decimal, 68 interpreting, 754 mixed, 34 prime, 41 rounded, whole (See Whole numbers) Numerator, 33 Numerical form, reading and writing whole numbers, 2–4 Nuptial numbers, 176 O OASDI See Old Age, Survivors, and Disability Insurance (OASDI) Odd lot, 693 Odd pricing, 239 Offer price, 709 OfficeMax, 148 Official Payments Corporation, 296, 639 Old Age, Survivors, and Disability Insurance (OASDI), 282 Old Navy, 433 Online banking, 96 Open-end credit, 421–431, 455 defined, 421 formulas, 454 types of, 428 Operating expenses, 238 total, 515 Operating statement, 513 Opportunity cost, 126, 330, 444, 464 “Order of operations,” 130 Ordinary annuity, 381–385 calculating the future value by formula, 386–387, 409 calculating the future value by using tables, 381–385, 409 calculating the present value by formula, 396–397 calculating the present value by using tables, 392–395, 409 defined, 382 formula, 387 of $1, future value of, 383–384 of $1, present value of, 394–395 Ordinary dating, 221–222 Ordinary interest, 325 calculating, 315–316 defined, 315 Original basis, 588 Original price, finding before a markdown, 254 Outsourcing, 273 Outstanding checks, 111 Outstanding shares, 694 Overall rate caps, 478 Overdraft fees, 104 Overhead, 238 Override commissions, 276 Overtime, 272 Owner’s equity, 502 defined, 500 liabilities and, 502–503 Ownership rights, 655 |Ownership share, 686 I-7 P Parentheses, 130 rule, 134 Partial payment, 218 calculating net amount due with credit given for, 218–219 timeline, 325 Partial payment credit, 218 Partial products, 15 Par value, 687 Pay gross, 271–273 net, 271 raise, 307 take-home, 271 Payee, 96 Payments, tax, 635 Payoff, calculating for loans paid off early by using the sum-ofthe-digits method, 444–446 Payor, 96 Payroll, 271–303 employee’s deductions, 281–288, 301–302 Payroll deductions married, paid weekly, 287 Medicare tax, 282 single, paid monthly, 288 Penske Truck Leasing, 598 Pepsi, 80 PE ratio See Price-earnings (PE) ratio Percentage, 167 Percentage formula Magic Triangle for remembering, 168 solving for principal, 322 solving for rate, 323 solving for time, 323–324 using to solve business problem, 167–173, 188 Percentage method, 283 allowance, 283 calculating an employee’s federal income tax withholding (FIT), 283–285 calculating an employee’s federal income tax withholding (FIT) by, 283–285 of withholding, tables for, 284 Percentage points defined, 183 understanding and solving problems involving, 183 Percent change finding the new amount after, 180–181 finding the original amount before, 181–183 Percent markup based on cost, converting to percent markup based on selling price, 248–249 based on selling price, converting to percent markup based on cost, 248–249 calculating based on cost, 240–241 calculating based on selling price, 245–246 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com I-8 Percent method, calculating sales tax by, 620 Percents converting to decimals, 162–163 converting to fractions, 164–165 defined, 162 solving other business problems involving, 177–183, 188–189 and their applications in business, 161–181 understanding and converting, 162–165, 187 Percent sign, 162 Periodic depletion cost of natural resources, calculating, 604–605 Periodic inventory system, 553 Periodic rate caps, 478 Perishable goods, 263–264 calculating the selling price of, 256 defined, 256 Perks, 294 Permanent insurance, 652 Perpetual inventory system, 553 Perquisites, 294 Personal balance sheet, 13–14 Personal financial statements, 15 Personal lines of credit, calculating, 428–431 Personal property, 624 Pharmacy and drug store industry, 215 Piecework, 273 Pie chart defined, 739 reading and constructing, 739–747 Piperlime, 433 PITI, 473 of a mortgage loan, calculating the monthly, 473–474 Pizza Hut, 330 Place value chart for whole numbers, system, Plunging postal volume, 13 Plus sign, PMI See Private mortgage insurance (PMI) Policy, 651 Policyholder, 651 Pools, 686 Portion, 183 defined, 167 solving for, 168–170 PPI See Producer Price Index (PPI) Preferred banking method, 96 Preferred stock, 687 distributing dividends on, 686–689 Premium, 651 annual fire insurance, 662 calculating, 653–655 calculating fire insurance, 661–663 calculating for short-term policies, 657–658 calculating for various types of policies, 655–657 calculating motor vehicle insurance, 670–672 Premium factor, 654 Present amount, 352 Present value (PV), 313, 350–372 of $1 at compound interest, 364 of future amount calculating by using present value tables, 364–365 of future amount, calculating by using the present value formula, 367 to future value, 363 table factors, creating for periods beyond the table, 366 Present value formula, calculating present value of a future amount by using, 367 Present value of an annuity, 391–397, 410 calculating by using tables, 392–397 defined, 392 timeline illustrating, 381 Present value of an annuity due calculating by formula, 396–397 calculating by using tables, 393–395 Present value of an ordinary annuity of $1 (Table), 394–395 calculating by formula, 396–397 calculating by using tables, 392–395 Present value tables, calculating the present value of a future amount by using, 364–365 Price cash, 436 purchase, 436 Price-earnings (PE) ratio defined, 692 of a stock, determining, 692–693 Prime number, 41 Principal defined, 313 solving for, 322 Private mortgage insurance (PMI), 468 Proceeds computing on a stock transaction, 693–695 defined, 332, 693 Producer Price Index (PPI), 212 Product, 15 Profit, 513–515 net, 515 Profitability ratios, 523, 526, 537 Profit and loss statement, 513 Profit or loss, 513 Promissory note defined, 331 interest-bearing, 331 understanding, 331–336, 342 Proper fraction, 33 Property appraiser, 625 Property class, 600 Property insurance, 661–666, 677–678 defined, 661 short-rate schedule, 663 understanding, 661–663 Property, plant, and equipment, 503 Property tax, 624–630, 641–642 calculating the amount of, 625–627 defined, 624 Proportion, 143 Prox, 222 Proximo dating, 222 defined, 222 Proxy statement, 501 Prudential life insurance, 652 Publication 15-A, Employer’s Supplemental Tax Guide, 286 Publicly held corporation, 686 Public Storage Inc., 598 Purchase price, 436 Purchase vs lease, 464–465 PV See Present value (PV) Q Qualifying ratios, 484 Quarterly estimated tax, calculating for self-employed persons, 295–296 Quarterly Estimated Tax Payment Voucher, Form 1040-ES, 295 Quick ratio, 525 Quicksilver Corporation, 461 Quotient, 17 R Radio frequency identification (RFID), 572 Raise to higher terms, 38–39 Range, 747 defined, 751 determining, 751–754 Rate, 167 coupon, 699 defined, 313 solving for, 170–172, 323 U.S prime, 428 Rate of change formula, 177, 183, 187 Rate of increase/decrease, determining, 177–180 Rating factors, 671 discounts, 672 Ratio, 143, 523 acid test, 525 calculating financial, 524–527 cost, 565 coverage, 665 current, 524 debt-to-assets, 526 debt-to-equity, 526 efficiency, 523, 525–526, 537 housing expense, 484 lending guidelines, 484 leverage, 526, 537 liquidity, 524–525, 537 Index price-earnings, 692–693 profitability, 526–527, 537 and proportion problems, understanding and solving, 143–144 qualifying, 484 quick, 525 working capital, 524 RBS WorldPay, Inc., 639 Real estate defined, 468, 624 Real property, 624 Rebate fraction, 445 Reciprocals, 53 Recorde, Robert, 131 Recreational Equipment Incorporated (REI), 143 Recycling and composting, 142 Reduced paid-up insurance, 655 Reduced to lowest terms, 36–37 Refund due on cancelled policies, 663–665 regular, 664–665 short-rate, 663–664 Regis Corporation, 329 Registered nurses (RNs), 305 Regular refund, 664–665 REI See Recreational Equipment Incorporated (REI) Relative frequency distribution, 762 Remainder, 9, 17 Renter’s insurance, 664 Repeating decimal, 83 Residual value, 464, 588 Res summa, 73 Restrictive endorsement, 100 Retail, calculating inventory turnover rate at, 571–572 Retailers, top U.S drug, 215 Retailing equation, 238 understanding and using to find cost, amount of markup, and selling price of an item, 238–240 Retail method, 565 estimating value of ending inventory by, 565–567 Retail store managers, 203 Retained earnings, 503 Returned items, 111 Return on investment (ROI), 527, 711–712 calculating, 711–712 Revenue, 513, 514, 516 top 10 life insurance companies by, 652 Reverse order, adding digits in, Revolving credit, 422 Rewards checking, 123 RFID See Radio frequency identification (RFID) Risk financial, 686 vs return, 686 shared, 651 Rite Aid, 215 RNs See Registered nurses (RNs) ROG dating, 223 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com Index ROI See Return on investment (ROI) Roosevelt, Theodore, 419 Root, 129 Rounded numbers, Rounding all the way, Rounding whole numbers, 4–5 Round lot, 693 Rule of 72, 357 Rule of 78, 444 Rules of divisibility, 36 S Safe-deposit boxes, 106 Safety of investments, 686 Safeway, 215 Salary, 271 prorating annual, on basis of weekly, biweekly, semimonthly, and monthly pay periods, 271–272 Salary plus commission, 277 Sale price, 253 determining after a markdown, 253 Sales and excise taxes, 640 Sales charge and sales charge percent of a mutual fund, calculating, 709 Sales report, 728 Sales tax brackets, 619 Sales taxes, 618–624, 640–641 calculating amount of when total purchase price is known, 621 calculating by the percent method, 620 defined, 618 determining by sales tax tables, 618–619 Sales tax rate, 618 Sales tax tables, determining sales tax by, 618–619 Sale, terms of, 216–224, 228 Salvage value, 588 Satellite radio, 214 Schwinn Fitness, 451 Scientific calculator, 322 S-corporation, 637 Scrap value, 588 Sears, 565 Seasonal goods, 254 SECA tax See Self-Employment Contributions Act (SECA) tax Second mortgages, home equity loans and lines of credit, 483–485, 490–491 Section 179 deductions, 602 table, 602 Secured bonds, 699 Secured loans, 422 Securities and Exchange Commission’s Investor Information Service, 708 Self-employed person calculating quarterly estimated tax for, 295–296 tax responsibility, 291–293, 302–303 Self-Employment Contributions Act (SECA) tax, 292–293 Self-employment tax, 292–293 Selling price of an item, using the retailing equation to find, 238–240 calculating amount of when total purchase price is known, 621 calculating percent markup based on, 245–246 calculating when cost and percent markup based on selling price are known, 246–247 calculating when cost and percent markup based on cost are known, 241 computing the final after a series of markups and markdowns, 254–255 markup based on, 245–246, 262–263 of perishable goods, calculating, 256 Semimonthly pay periods, prorating annual salary on the basis of, 271–272 Sentences, 129 Series trade discount, 210 Servicemen’s Readjustment Act, 468 Service sector businesses, 11 Settlement statement, 474 7-Eleven, 256 Shared risk, 651 Shareholder, 686 Shares defined, 686 of mutual funds, calculating number of purchased, 710–711 outstanding, 694 Sharp, 164 Shipping terms, 197, 200 Shopping centers, top U.S., 245 Shortcut, 168, 427 division, 17, 76 multiplication, 15–16, 74 Short-rate, refund, 663–664 Short-term capital gains, 714 Short-term policy, 663 calculating premiums for, 663–665 Simple annuity, 381 Simple discount notes, 332, 339 calculating bank discount and proceeds for, 332 calculating true/effective rate of, 333 Simple interest, 313, 339 calculating for loans with terms of days by using exact interest and ordinary interest methods, 314–316 computing for loans with terms of years or months, 313–314 understanding and computing, 313–318, 340 Simple interest formula, 339, 352 days, 314–316 using, 321–326, 341 years or months, 313–314 Single equivalent discount, 212 Single-line chart, 729 Sinking fund payment calculating by formula, 402–403, 412 calculating the amount by table, 400–401, 411 Sinking funds, 400–404, 411–412 defined, 400 Sirius XM Radio, Inc., 214 Sir Speedy, 148 Smart labels, 572 Social Security Act, 282 Social Security Administration, 286 Form 7004-SM, Request for Earnings and Benefit Estimate Statement, 286 Social security tax (OASDI), 282 determining employee’s withholding using the combined wage bracket tables, 286–288 Solar energy, 449 Solution, 129 Solve an equation, 129 Sovran Self Storage Inc., 598 Space endorsement, 100 Special depreciation allowance, 602–604 Specialty retailer, 209 Specific identification method, 553–554 Speculative investments, 686 Spotting counterfeit products, 255 Spread, 477 Standard bar charts, 733, 736, 738 Standard & Poor’s, 702, 727 Staple goods, 254 Staples, 148 Starbucks, 532 State Unemployment Tax Act (SUTA), 293 Statistical Abstract of the United States, 727 Statistical inference, 727 Statistical information, 727, 728, 732 Stockbroker, 693 Stock, capital, 503 Stock certificate, 687 defined, 686 Stock exchanges, 693 Stockholders annual meeting of, 501 defined, 693 equity, 503, 504 Stocks, 686–704 calculating current yield for, 691–692 common, 686 defined, 686 determining the price-earnings ratio of, 692–693 distributing dividends on preferred and common, 686–689 preferred, 687 understanding, 686–689 I-9 Straight commission, 275–276 defined, 275 Straight-line depreciation method, 588 calculating depreciation by, 588–590 Straight piecework plan, 273 Structural class rating, 661 Student aid, 332 Subtraction, of decimals, 73 defined, of fractions, 41–47, 59–60 of mixed number, 44–47 verification of, 9–10 of whole numbers, 9–10, 24 Subtrahend, Sum, Summa, 73 Sum-of-the-digits method calculating the finance charge rebate and payoff for loan paid off early, 444–446 defined, 444 Sum-of-the-years’ digits method, 590 calculating depreciation by, 590–592 Sums, 73 Supercuts, 329 Supermarket revenues, 185 Supervalu, 215 Survey of Current Business, The, 523, 727 SUTA See State Unemployment Tax Act (SUTA) Swapalease.com, 464 T Table(s) APR, 438–441 combined wage bracket, 286 compound interest, 354 defined, 727 future value of an ordinary annuity of $1, 383–384 for percentage method of withholding, 284 present value, 365 present value of an ordinary annuity of $1, 394–395 reading and interpreting information from, 727–728 withholding, 287, 288 Taco Bell, 330 Take-home pay, 271 Tangible assets, 607 Target, 159, 215, 257, 555 Target average inventory, 573 Taxable bonds, 706 Taxable income, 631 calculating for individuals, 631–633 procedure to calculate, 631 Tax assessor, 625 Taxation, 618 Tax Computation Worksheet, 635 Tax credits, 635 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com I-10 Taxes ad valorem, 624 excise, 618–624, 640–641 income, 515, 631–637, 642–643 income before, 514 other, 635 property, 624–630, 641–642 sales, 618–624, 640–641 Tax facts, 649 Tax Foundation, 619 Tax-free bonds, 706 Tax Freedom Day, 649 Tax liability, using the Tax Table to determine, 633–635 Tax owed, calculating an individual’s amount of, 635–636 Tax Policy Center, 633 Tax rate, calculating to meet budgetary demands in a community, 628–629 Tax Reform Act of 1984, 600 Tax Reform Act of 1986, 600 Tax return, 631 calculating, 635–636 Tax Table, using to determine tax liability, 633–635 T-bills, 335 Teaser rate, 477 Telemarketers, 306 Terminology for invoices, 198 Term insurance, 652–653 Terms, 129 decreasing, 653 Terms of sale, 216–224, 228 dating methods, 221–224 defined, 216 timeline, 217 Texas Instruments, 71, 164 TIAA-CREF, 652 Time defined, 313 solving for, 323–324 Timeline for discounted note, 334 illustrating present and future value of annuity, 381 partial payment, 325 for terms of sale, 217 Timeshare, 450 Times sign, 15 Time value of money, 351–359 compound interest, 371–372 defined, 351 Title, 474 Total, Total cost, 588 Total deferred payment price of an installment loan, calculating of, 436–437 Total obligations ratio, 484 of borrower, 484–485 Trade association, 210 Trade channel, 204 Trade discount rate, calculating when list price and net price are known, 206–207 Trade discounts, 204 calculating the amount of by using a single equivalent discount, 212–213 series, 210–213, 229 single, 204–207, 229 Trade-in, 436 Trade-in value, 588 Traditional depreciation— methods used for financial statement reporting, 588–596, 608–610 Transpose, 130 TransUnion, 432 Travel agents, 174 Trend analysis chart of financial data, 529 defined, 527 of financial data, 527–529 financial ratios and, 523–529, 537 Tropical storm force wind speed probabilities, 178 True/effective rate of interest for simple discount note, calculating, 333–335 True interest rate, 333 True Value Company, 564 Truman, Harry, 81 Truth in Lending Act, 421, 436 Truth in Savings Law, 358 Two-part process, 163 U U-Haul, 598 Ultralight aircraft, 461 Underwriter, 651 Unemployment rate, 277 Uneven division, 17 Ungrouped data calculating arithmetic mean of, 748 defined, 754 measures of central tendency and dispersion, 747–751, 754, 763, 765–766 Units-of-production method, 594 calculating depreciation by, 594–599 Universal Fitness, 451 Universal life policy, 653 Universal Product Code (UPC), 554, 572 Unknowns, 129 Unlike fractions, 43 subtraction of, 45–46 Unpaid or previous month’s balance method, calculating finance charge and new balance by, 422–426 Unsecured bonds, 699 Unsecured loans, 422 UPC See Universal Product Code (UPC) UPS Store, 148, 361 U.S Bureau of Labor Statistics, 54, 94, 375, 407 USDA See U.S Department of Agriculture (USDA) U.S Department of Agriculture (USDA), 753 U.S Department of Commerce, 523 U.S Department of Education, 332 U.S Department of Labor, 108 U.S Department of Transportation, 199 Useful life of asset, 588 U.S Environmental Protection Agency (EPA), 142 U.S Federal Aviation Administration (FAA), 461 U.S Postal Service (USPS), 13 U.S prime rate, 428 U.S rule, 325 U.S Treasury bills defined, 335 purchasing of, 335–336, 339 Utility bills, cities with highest average monthly, 175 V VA mortgages See Veterans Affairs (VA) mortgages Variable life policy, 653 Variables, 129 Verification of addition, 7–8 of division, 17 of multiplication, 16–17 of subtraction, 9–10 Vertical analysis, 504 of an income statement, 516–517, 536 of a balance sheet, preparing, 504–506, 535 Vertical bars, 734 Veterans Affairs (VA) mortgages, 468, 484 Virtual safe-deposit boxes, 106 Visa, 14 VistaPrint, 148 Volume buying, 210 Voluntary deductions, 281 W Wage base, 282 reaching the limit, 282–283 Wage laws, minimum, 272 Wages, 272 Walgreens, 215 Wall Street Journal Online, The, 692, 707, 708 mutual fund quotation table, 708 stock quotation table, 690 Wall Street Journal, The, 53, 428, 500, 727 Walmart, 215, 565, 739 Wal-Mart Stores, Inc., 254 Wasting assets, 604 Index Weekly pay periods, prorating annual salary on the basis of, 271–272 Weighted average method See Average cost method Wells Fargo & Co (WFC), 126 W-4, Employee’s Withholding Allowance Certificate, 283 Whole foods market, 208 Whole life insurance, 653 Whole numbers, 1–25 addition of, 7–9, 24 converting improper fractions to, 35–36 defined, division of, 17–19, 25 multiplication of, 15–17, 25 place value chart for, reading and writing, 2–4 rounding, 4–5 subtraction of, 9–10, 24 Wholesale price index, 212 Winnebago Industries, Inc., 452 Withholding Allowance Certificate, W-4, 283 Withholding allowances, 283 percentage method amount for one, 283 Withholdings, 281 tables for percentage method of, 284 Withholding tables married, paid weekly, 287 single, paid monthly, 288 Word form, reading and writing whole numbers, 2–4 Word problems, 8–9 using to solve business-related, 139–144, 152–153 Working capital, 524 Working capital ratio, 524 Work-life initiatives, 294 Written statements, writing expressions and equations from, 136–137 X X-axis, 729 Xe.com, 92 Y Y-axis, 729 Years, simple interest formula, 313–314 Year-to-date (YTD) earnings, 282 Yum! Brands, Inc., 330 Z Zero Coupon Bonds, 417 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.ebookslides.com Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-202 Copyright 2020 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it ... developmental math, and finite math including math of finance Developing the software components formerly known as MathCue .Business for use with Contemporary Mathematics for Business and Consumers has... I: Understanding and Using Checking Accounts 96 1-1 1-2 Reading and writing.5 whole numbers in numerical and word form 4-1 Opening a checking account and understanding how various forms are... also to Mike Gordon and Fernando Rodriquez for their creativity, business acumen, and wonderful research I wish to convey my love and thanks to my daughter, Jessy Bergeman, for her assistance