A child swings on a 14 m rope. The highest point of her swing is 3 m above the ground. When the child is at the lowest point, 1 m above the ground, what is her speed?

Fertility monitors are available that attempt to monitor the ovarian cycle to predict times of highest fertility. Knowing sperm can survive for up to 5 days in the oviduct, which hormone (choose from LH, FSH, Estradiol, and progesterone) should you monitor to find peak periods of fertility? Explain your answer.

1. Assuming APRs are equal, the effective interest rate on a loan is highest when:

A)        The loan has no points and a 30-year maturity and is prepaid in five years

B)        The loan has no points and is paid off at maturity in 30 years

C)        Points are charged and the loan is paid off at maturity in 30 years

D)        Points are charged and the loan has a 30-year maturity but prepaid in five years

2. Which is NOT a component of an adjustable rate mortgage (ARM)?

1. A margin
2. An index
3. A chapter
4. Caps

3. You entered into a 30-year, $250,000 ARM with monthly repayments.  The initial interest rate is 6%, with applicable interest rate reset every two years.  What the monthly payment during the first year?

1. $18,162.23
2. $15,000.00
3. $1,498.88
4. $8,994.73

4. Under which scenario is negative amortization likely to occur when you borrow under an ARM?

Payment Cap                Interest Rates

A)        None                            Increasing

B)        None                            Decreasing

C)        7.5%                            Increasing

D)        7.5%                            Decreasing

5. A house is for sale for $250,000.  You have a choice of two 20-year mortgage loans with monthly payments: (1) if you make a down payment of $25,000, you can obtain a loan with a 6% rate of interest or (2) if you make a down payment of $50,000, you can obtain a loan with a 5% rate of interest.  What is the effective annual rate of interest on the additional $25,000 borrowed on the first loan?

1. 1.00%
2. 6.00%
3. 12.95%
4. 18.67%

For each of the following brief scenarios, indicate whether the HIGHEST ranking supervisor (in the scenario) acted in an appropriate manner and give reasons as to why or why not.

1. The purchasing manager for a firm had been bragging in the factory break room about the great deal that he got for the firm on some paper for the printing department of the organization. In the meantime, the manager of the printing department was discovering that the quality of the paper was inconsistent, and it was causing three times the normal amount of malfunctions of the printing equipment, resulting in extra labor usage and more than the usual waste of paper. The Vice-President of Production of this firm reviews the performance of each manager and support staff person at a group meeting of these people once every quarter. The Vice-President of Production, at the most recent meeting, praised the purchasing manager and criticized the manager of the printing department for their respective performances in keeping variances under control.

2. The Vice-President of Manufacturing at a major corporation recently issued a mandate that one unit per day from each assembly line in the organization must be pulled from the assembly line and subjected to destructive sampling to ensure the quality of all products being produced. The Paper Clip division produces 5,000 boxes of paper clips per day and gladly complied with the mandate. The Filing Cabinet division of the firm produces 15 filing cabinets per day. At this month's end-of-month review of division performance, the Vice-President criticized the Filing Cabinet division for the sudden 7% increase in materials and labor costs experienced and the sudden 6.5% drop in number of goods units of output from the amounts that the budget expected.

For each of the following brief scenarios, indicate whether the HIGHEST ranking supervisor (in the scenario) acted in an appropriate manner and give reasons as to why or why not.

1. The Vice-President of Manufacturing notices that the manager of the Assembly Department has had an unfavorable direct labor variance of $40 to $80 for each of the past six months. The budgeted amount for direct labor in the Assembly Department each month is $50,000. The VP of Manufacturing assigns an administrative assistant from the VP's office to spend a full month on the Assembly Department work floor to try and discover the underlying cause of the variance.

2.. A Vice-President of Manufacturing has recently fired the Department Supervisor for the Mixing Department for having a $15,000 unfavorable variance on the budget line item that deals with fixed factory overhead for the Mixing Department. The dismissed department supervisor attempted to explain that $12,667 of the $15,000 unfavorable variance was due to a recent property tax that went into effect on factory equipment used to mix environmentally sensitive materials, but to no avail.

3. For an annual budget review, the manager of a hospital's x-ray department went into the meeting feeling quite confident. All of the x-ray department's variances were favorable except for a minor unfavorable variance for materials that had been caused by a machine malfunction resulting in some ruined x-ray film. During the review, the manager's supervisor ignored the favorable variances and spent the entire time focusing on the unfavorable variance.

Which of the following investments would have the highest future value at the end of 10 years? Assume that the effective annual rate for all investments is the same and is greater than zero.

Which of the following options will generate the highest interest over the term, assuming the same $100 principal?

5% quarterly compounding for 3 years

5% monthly compounding for 2 years

5%daily compounding for 2years

5% simple interest rate for 3years

1.

State constitutions:

2.

Administrative agencies can:

3.

The original or oldest source of law in this country is:

Out of the four types of auctions, which one results in the highest expected revenues for the seller in a common-value auction? Which one results in the lowest expected price paid for the buyer in a common-value auction? Explain.

What is the role of rating agencies of fixed income securities? What is the highest possible rating? What is the difference between investment grade and speculative grade debt? Give three (3) specific examples of firms and/or municipalities with investment grade or speculative grade debt and include the rating as of Q3 2016 or Q4 2016 or Q1 2017. In your opinion, should the ratings agencies' be held accountable for their "opinions" of firms' fixed income securities?