## The Leungs decided to build a new house. The contractor quoted them

The Leungs decided to build a new house. The contractor quoted them  a price of \$215,000, including the lot. The taxes on the house would be \$3200 per year, and homeowners’ insurance would cost \$450 per year. They have applied for a conventional loan from a bank. The bank is requiring a 15% down payment, and the interest rate is 5.5% with 2 points. The Leung’s annual income is \$122,740. They have more than 10 monthly payments remaining on each of the following: \$220 for a car, \$175 for new furniture, and \$210 on a college education loan. Their bank will approve a loan that has a total monthly house payment of principal, interest, property taxes, and homeowners’ insurance that is less than or equal to 28% of their adjusted monthly income.

What is the required down payment?

## The graph above and to the right, created by Stat Crunch, shows

The graph above and to the right, created by Stat Crunch, shows the U.S. gross box office earnings for movies, in millions of dollars, for the years 2013–2018.

a) Determine the percent decrease in gross box office earnings from 2013 to 2014.

b) Determine the percent increase in gross box office earnings from 2014 to 2015.

c) Determine the percent increase in gross box office earnings from 2015 to 2016.

d) Determine the percent decrease in gross box office earnings from 2016 to 2017.

e) Determine the percent increase in gross box office earnings from 2017 to 2018.

## Suppose you purchase a new wardrobe for \$1000 with a credit card.

Suppose you purchase a new wardrobe for \$1000 with a credit card. You decide to pay for your new wardrobe by making the minimum monthly payment each month. You do not charge anything else to this credit card until you have the wardrobe paid off. Your credit card company determines your minimum monthly payment by adding all new interest to 1% of the outstanding principal. The credit card company charges an annual percentage rate of 18%. Go to an Internet credit card payment calculator web site such as www.bankrate.com to answer the following questions.

a) How long will it take you to pay off the entire credit card debt if you make the minimum monthly payments?

b) How much interest will you pay?

c) Adding the interest paid to the cash price, determine the total cost of your wardrobe.

## The Drummonds have decided to build a new house. The contractor quoted

The Drummonds have decided to build a new house. The contractor quoted them a price of \$135,700. The taxes on the house will be \$3450 per year, and homeowners’ insurance will be \$350 per year. They have applied for a conventional loan from a local bank. The bank is requiring a 25% down payment, and the interest rate on the loan is 4.5%. The Drummonds’ annual income is \$64,000. They have more than 10 monthly payments remaining on each of the following: \$218 on a car, \$120 on new furniture, and \$190 on a camper. Their bank will approve a loan that has a total monthly house payment of principal, interest, property taxes, and homeowners’ insurance that is less than or equal to 28% of their adjusted monthly income. Determine

a) The required down payment.

b) 28% of their adjusted monthly income.

c) The monthly payment of principal and interest for a 30-year loan.

d) Their total monthly payment, including insurance and taxes.
e) Do the Drummonds qualify for the mortgage?

## The U.S. government borrows money by selling Treasury bills. Treasury bills are

The U.S. government borrows money by selling Treasury bills. Treasury bills are discounted notes issued by the U.S. government. On November 14, 2018, Kris purchased a 364-day, \$1000 U.S. Treasury bill at a 0.15% discount. On the date of maturity, Kris will receive \$1000.

a) What is the date of maturity of the Treasury bill?

b) How much did Kris actually pay for the Treasury bill?

c) How much interest did the U.S. government pay Kris on the date of maturity?

d) What is the actual rate of interest of the Treasury bill? Round the answer to the nearest ten-thousandths of a percent.

## The following table shows the top five attended movies, at movie theaters,

The following table shows the top five attended movies, at movie theaters, in the United States during 2018.

Movie                                                 2018 Movie Attendance

Black Panther . . . . . . . . . . . . . . . . . . . . . . 70,006,000

Avengers: Infinity War . . . . . . . . . . . . . . . 67,881,500

Incredibles 2 . . . . . . . . . . . . . . . . . . . . . . . 60,858,200

Jurassic World: Fallen Kingdom . . . . . . . 41,772,000

Aquaman  . . . . . . . . . . . . . . . . . . . . . . . . . 33,506,200

Total  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274,023,900

If a person attends one of these five movies, determine the empirical probability the movie is

a) Black Panther.

b) Incredibles 2.

c) Aquaman.

Write your answer as a decimal number rounded to four decimal places. In each exercise, assume the trend continues.

## The following graph was created using Stat Crunch with data from AutomobileMag.com.

The following graph was created using Stat Crunch with data from AutomobileMag.com. The graph shows U.S. automobile sales, in automobiles sold, by manufacturer, for the year 2018. The total sales for the year 2018 were 17,300,000 automobiles.

If an automobile is sold in the United States, determine the empirical probability that the automobile sold is manufactured by

a) General Motors.

b) A manufacturer other than General Motors.

c) Honda.

d) A manufacturer other than Honda.

Write your answer as a decimal number rounded to four decimal places. In each exercise, assume the trend continues.

## The following table shows the number of video games sold worldwide for

The following table shows the number of video games sold worldwide for the five highest selling video games, all formats combined, in 2018.

Title                                                                Units Sold

Red Redemption 2 . . . . . . . . . . . . . . . . . . 19,711,000

Call of Duty: Black Ops IIII . . . . . . . . . . . . 14,168,000

FIFA 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,119,000

Super Smash Bros. . . . . . . . . . . . . . . . . . . 8,951,000

Spider-Man . . . . . . . . . . . . . . . . . . . . . . . .  8,758,000

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,707,000

If one of these five video games is purchased, determine the empirical probability the video game purchased is

a) Red Redemption 2.

b) FIFA 19.

c) Spider-Man.

Write your answer as a decimal number rounded to four decimal places. In each exercise, assume the trend continues.

## At the coffee station at work, you have several options when making

At the coffee station at work, you have several options when making a cup of coffee. You can choose to add no cream (N), regular cream (R), or hazelnut-flavored cream (H). You can also choose to add no sweetener (O), sugar (S), or aspartame (A).

a) Determine the number of points in the sample space.

b) Construct a tree diagram and list the sample space.

If you were to randomly prepare one cup of coffee, determine the probability that

c) You prepared a cup of coffee with regular cream and sugar?

d) You prepared a cup of coffee with no cream and no sweetener?

e) You prepared a cup of coffee with sugar?

Use the fundamental counting principle to determine the answer to part (a). Assume that each event is equally likely to occur.

## Brisson is getting dressed for work and is considering his options for

Brisson is getting dressed for work and is considering his options for a shirt, a tie, and a pair of slacks to wear. He has shirts available in white, pink, and yellow. He has ties available in red, gray, and blue. He has pairs of slacks available in navy and khaki.

a) How many different options for a shirt, a tie, and a pair of slacks does Brisson have?

b) Construct a tree diagram and list the sample space.

Assuming all options are equally likely, what is the probability that Brisson chooses

c) A white shirt, a red tie, and a navy pair of slacks?

d) A gray tie?

e) A shirt other than a white shirt?

Use the fundamental counting principle to determine the answer to part (a). Assume that each event is equally likely to occur.