Business Calculus Final Exam

1. Using the given conditions, choose the correct equation for the line.
Passing through (-8, 5) and parallel to the line whose equation is 5x-6y-7=0.
a. y= 5/6x + 35/3
b. y= 5/6x - 5/3
c. y= 5/6x - 7/6
d. y= -8x +5
I chose this question because it is from chapter one and I think it does a good job covering the
basics of writing equations. There are many components to look at like the point the line goes
through and the fact that the line is parallel to the given equation.

2. The profit from the production and sale of iPod players is given by the function P(x)= 450x -
0.1 x 2 - 2000, where x is the number of units produced and sold. What is P(500)? Interpret the
results.
P(500)= 198000; $198000 is made by producing and selling 500 iPod players.
I chose this question because it requires one to understand that P(500) means to plug in 500 for
x in the equation. This question also requires one to understand the answer they got and
explain what it means.

3. A company buys and retails baseball caps, and the total cost function is linear. The total cost
for 200 caps is $2690, and the total cost for 500 caps is $3530. What is the marginal cost?
a. .82
b. 2.8
c. 1.37
d. .36
I chose this question because it deals with marginal cost. Marginal cost is the rate of change of
a function and one needs to know that in order to answer the question.

4. Write the equation of a line with an x-intercept of 4 and a y-intercept of 5.

y= -5/4x + 5
I chose this question because there are multiple things to understand and do to get the correct
answer. One needs to use the intercept points to find the slope of the equation and then use all
of the known values to find the equation.

f (x+h)−f (x)
5. For the given function, find h
f(x)= 2 x2 + 8
f (x+h)−f (x)
h = 4x+2h
I chose this question because it deals with the difference quotient and I felt like there should be
a question addressing that. For this question, it’s important to understand how to plug in the
equation and that (x+h) replaces x in that section.
6. ​A retail chain will buy ​800 ​cordless phones if the price is ​$30 ​each and ​200 ​if the price is ​$60.
A wholesaler will supply ​100 ​phones at ​$20 e ​ ach and ​850 ​at ​$50 ​each. Assuming that the
supply and demand functions are​ linear, find the market equilibrium point and explain what it
means.
Market equilibrium occurs when the number of units is 600 and the price is ​$40 per unit. This
means that when the price is ​$40​, the number of cordless phones demanded equals the
number of cordless phones​ supplied, which equals 600.
I chose this question because it requires one to understand what market equilibrium means and
how to find it. Also, it involves supply and demand functions which are important to understand.

7. ​The profit for a product can be described by the function ​P(x)=212x−5500− x 2 ​dollars, where
x is the number of units produced and sold. To maximize​ profit, how many units must be
produced and​ sold?
a. 212 units
b. 53 units
c. 106 units
d. 5736 units
I chose this question because it requires one to understand what maximum profit is and what
the vertex equation is. Max/min profit are the vertex but one has to know how to interpret it
correctly.

Use the system below to answer the following questions (8-9).

2x + 13y= 2
x + 6.5y= 1

8. Does the system have a unique solution, no solution, or many solutions?

a. Unique solution
b. No solution
c. Many solutions
I chose this question because it requires one to know how to solve a system and interpret it.

9. What does this mean graphically?

a. The two lines intersect at a single point.
b. The two lines are the same.
c. The two lines are parallel.
I chose this question because it goes off of what was answered in the previous question. One
has to know what the previous answer meant and what it would look like on a graph.

10. ​The demand for a certain product is given by ​p+3q=314​, ​and the supply for this product is
given by ​p−5q=90​, ​where p is the price and q is the number of products. Find the price at which
the quantity demanded equals the quantity supplied.
$230
I chose this question because I thought that there needed to be one that addresses the price
and number of products. There are many steps one must know to complete the question.
11. ​Suppose that the total profit in hundreds of dollars from selling x items is given by ​P(x)=3 x 2
−5x+9. Find the average rate of change of profit as x changes from 3 to 5.
$1900 per item
I chose this question because it involves finding the average rate of change which hasn’t been
addressed on the test yet.

12. Suppose the demand for a certain item is given by ​D(p)=−4 p 2 −7p+700​, where p
represents the price of the item in dollars. Find the rate of change of demand with respect to
price.
-8p-7
I chose this question because it involves using derivatives which is the same thing as the
instantaneous rate of change. This knowledge and the correct formula must be known to
complete the question.

13. Find the derivative of the function.

y= x 3 -14 x 2 +32x+9
y l = 3 x2 -28x+32
I chose this question because it is about finding the derivative and the following questions will
build on this idea.

x4
14. ​Find ​f′(−3) ​if ​f(x)= 6 −6x.
l
f (-3)= -24
I chose this question because it involves finding the derivative of the equation and then further
expanding on this knowledge by substituting -3 in for x and solving.

15. Explain the concept of marginal cost. How does it relate to​ cost? How is it​ found?

How does the marginal cost relate to​ cost?

a. Marginal cost​ r​ efers to the rate of change of cost.
b. Cost​ r​ efers to the rate of change of marginal cost.
c. Marginal cost​ i​ s the same as cost.

How is the marginal cost​ found?

a. Marginal cost is found by taking the antiderivative of cost.

b. Marginal cost is found by taking the derivative of cost.
c. Marginal cost​ i​ s the same as cost.

I chose this question because it involves knowing the definition of marginal cost and how it’s
found. This information can be helpful when figuring out what to do in further questions because
marginal ____ applies to many things.
16. ​Assume that a demand equation is given by ​q=9000−100p. ​Find the marginal revenue for a
production level (p) of 7000 units.

-50

I chose this question because it can help be solved by looking at the previous question and
apply the knowledge to marginal revenue instead of marginal cost.

17. Use the product rule to find the derivative.

y= (5 x2 +4)(2x-5)
y l = 30 x2 -50x+8
I chose this question because using the product rule was an important thing that we did so it
would be important to include on an exam and for someone to remember how to do.

18. For the cost and price functions​ below, find ​a)​ the​ number, q, of units that produces
maximum​ profit; ​b)​ the​ price, p, per unit that produces maximum​ profit; and ​c)​ the maximum​
profit, P.

C(q)=80+16q​; p=68−2q

​a)​ The​ number, q, of units that produces maximum profit is q=​13​.

​b)​ The​ price, p, per unit that produces maximum profit is p=​$42​. ​
c)​ The maximum profit is P=​​$258​.
I chose this question because it ties together many things that were discussed in the calculus
portion of the class. It takes a lot of knowledge of many different components to complete.

19. Find the simple interest on this loan. Assume 365 days in a year.
​$5377 at 2​%; loan made on August 13 and due December 21
$38.30
I chose this question because the next section will be focused on interest and this is just the
beginning of what we learned involving interest. It’s a simple start.

20. Find the future value of this loan.

$14,125 at 5.9% for 11 months
$14888.93
I chose this question because it builds on the last question and requires one to understand what
future value is and how to find it.

21. A gift of ​$5000 to a city grew to ​$2​,000,000 in 200 years. At what interest rate compounded
annually would this growth​ occur?
The interest rate would be 3.04​%.
I chose this question because it involves compound interest and that is a topic that is important
to understand and execute.
22. Find the amount of the ordinary annuity based on the information given.
R=​$11,000​, 6​% interest compounded semiannually for 8 years
The amount of the ordinary annuity is ​$221726
I chose this question because it involves ordinary annuity and that is a large topic that we
covered so it would be important to cover in an exam.

23. ​A man deposits ​$19,000 ​at the beginning of each year for ​8 ​years in an account paying ​8​%
compounded annually. He then puts the total amount on deposit in another account paying ​9​%
compounded semiannually for another ​7 ​years. Find the final amount on deposit after the entire
15​-year ​period.
He will have a final amount of ​$404212.16​ after the entire 15​-year period.
I chose this question because it involves ordinary annuity and compound interest. It combines
two important topics in one question.

24. ​A​ woman, with her​ employer's matching​ program, contributes ​$500 ​at the end of each
month to her retirement​ account, which earns ​8​% ​interest, compounded monthly. When she
retires after ​47 ​years, she plans to make monthly withdrawals for ​32 ​years. If her account earns
4​% ​interest, compounded​ monthly, then when she​ retires, what is her maximum possible
monthly withdrawal​ (without running out of​ money)?
$14353.19
I chose this question because it involves using annuities and ammortization. One would have to
have a great understanding of both topics to correctly complete the question.

25. Complete the first three lines of an amortization schedule for the following loan. Assume
monthly payments.
​amount, ​$3000​; ​rate,6​%; ​time,eighteen months

Payment Amount of Interest Applied to

Balance
Number Payment Payment Principal
​$
3000
​$ ​$ ​$ ​$
1 174.70 15 159.7 2840.3

​$ ​$ ​$ ​$
2 174.7 14.2 160.5 2679.8

​$ ​$ ​$ ​$
3 174.7 13.4 161.3 2518.5
I chose this question because it involves filling out an ammortization schedule which is
important to know how to do. One would have to understand what each column is asking for
and what to do at each step.
 Grading Rubric

1. 4 pts
2. 4 pts- 3pts for correct answer, 1 pt for correct interpretation
3. 4 pts
4. 4 pts
5. 4 pts
6. 4 pts- 3 pts for correct market equilibrium pt, 1 pt for correct
explanation
7. 4 pts
8. 4 pts
9. 4 pts
10. 4 pts
11. 4 pts
12. 4 pts
13. 4 pts
14. 4 pts
15. 2 pts- 1 pt per individual question/answer
16. 4 pts
17. 4 pts
18. 4 pts- 1.33 pts per individual answer (a,b,c)
19. 4 pts
20. 4 pts
21. 4 pts
22. 4 pts
23. 4 pts
24. 4 pts
25. 6 pts- .5 pt per individual answer