Consumer math
You have a balance of $1,678.00 on a credit card with a 15.75% APR. How much interest is accrued if you pay nothing on the principal after 3 months?
$66.07
You owe $3,450.00. Which credit limit gives you an acceptable debt ratio?
$7,000.00
If you placed $1,000.00 in a savings account with an interest rate of 4.5%/ month versus an account with 3.75%/ month, how much more interest could you earn in that month?
$7.50 more
In order to answer this question, remember you purchased a home for $253,600.00 with a mortgage rate of 3.75% APR. If you pay $1,500.00 toward the first month's payment, how much is applied toward the principal?
$707.50
You purchase a home for $253,600.00 with a mortgage rate of 3.75% APR. How much interest is due after your first month?
$792.50
Your original purchase price was $825.00 plus 7% sales tax. You enter into an agreement where the interest (12.5% APR) is waived for the first 12 months provided you make the required monthly payments; otherwise the interest is accrued from the date of purchase. You miss the first payment due date. The late fee is $35.00. How much is the interest?
$9.20
How much is the interest if you do not pay the second month?
$9.66
you work 40 hours/week for 52 weeks and are given the option to be paid hourly or to go on salary in which situation will you earn the most
15.00/hour and a 2,000 bonus at the end of the year
A house is used as _____ for a loan.
collateral
Doris Debtor got in trouble because _____.
she had an unexpected event and no savings
You purchase 10.75 gallons of gasoline at $2.45/ gallon. You also bought gum ($0.65) and windshield wiper fluid ($4.97). The state has a food tax of 4% and you gave the clerk $20.00. How much is charged to your debit card?
11.99
You have a loan for $1,000.00 at 7.65% APR. $100.00 of the loan is due each month and there is a penalty of 2% on the original amount when not paid. If you do not pay anything on the loan during the year and assuming there is no compounding, how much will you owe in total?
$1,316.50
Bi-weekly mortgage is $455. Monthly phone charges are $34.95. The electric bill last month was $65.88. Groceries cost about $87/ week. What is a good estimate of your monthly expenses?
$1,359.00
Rent is $978. Phone charges last month were $54.89. Groceries cost about $93/ week. What is a good estimate of your monthly expenses?
$1,400.00
You are paid $12.75/hour. You work 40 hours/week for 4 weeks. Your involuntary deductions are FICA (7.65%), federal withholding (12%), and state withholding (7%). How much is your realized income?
$1,496.34
You take out a cash advance of $1,670.00 on a credit card with a 2% cash advance fee and a 13.5% APR. What is the amount due by the end of the month?
$1,722.56
You have a credit card with a balance of $1,758.64. The interest is 12.75% APR. A late payment fee of $35.00 is added to the principal if you pay after the first month due date of 12/20. You missed your payment but pay $100.00 the next month on 1/20. What is your new principal balance?
$1,731.59
Item Cost Item Cost Store brand soap $2.99 Name brand soap $3.95 Name brand shoes $38.65 Store brand shoes $20.35 Name brand socks (3 pairs/pack) $6.89 Store brand socks (3 pairs/pack) $7.25 Store brand khakis for work $25.94 Name brand khakis for work $34.50 Name brand dress shirt $24.95 Store brand dress shirt $21.65 Using the table, what is the cost of the luxury items?
$108.94
If the credit card from the previous question has an interest rate of 14.75% and you do not make a payment the first month on the $1,685.90 balance, how much is the difference between the interest and reward? (Remember, the reward is $33.72.)
$13.00
Your cell phone plan is $35.98/month plus a utilities tax of 6.5% APR. During the year, you go 40 minutes over your plan at a rate of $0.35/minute. How much do you pay for the overages?
$14.91
You purchase 3 CDs for $13.99 each. The sales tax is 4%. You have $60.00. How much is your change
$16.35
Using the table below, if your credit score is 750, how much will you pay in interest by the end of 1 month if you owe $2,375.00? Score <500 501-650 651-750 751-800 Rate (APR) 15.75% 12.75% 9.25% 5.75%
$18.31
You have a credit card with a balance of $1,758.64. The interest is 12.75% APR. A late payment fee of $35.00 is added to the principal if you pay after the first month due date of 12/20. You make a payment for $100.00 on 12/20. How much interest did you pay?
$18.69
You carry a balance of $2,065.00 on a credit card at a 17.25% APR for 5 months. How much is your total payment by the fifth month
$2,213.42
You have $2,675.00 on a credit card with a 15.75% APR. You miss your minimum payment and there is a late fee of $29.00. How much is your balance at the beginning of the second month?
$2,739.11
You invest $2,000.00 at a rate of 4% APR for a 3 months. How much interest did you earn?
$20.00
You invest $75.00 the first month and $1,000.00 the second month at 3.75% APR. How much interest do you accrue at the end of the second month?
$3.36
How much do you save by purchasing the store brand items instead of the name brand items from the table above?
$30.76
You have a land-line telephone that costs $25.95/month plus a utilities tax of 4.5% APR. How much will you pay for your telephone use in a year?
$325.41
A credit card gives 2% cash back on purchases. You purchase $1,685.90 in items with that card. What is your reward amount?
$33.72
You have two credit cards. One has a balance of $1,675.00 at a 9.75% APR and the other has a balance of $2,378.00 and is dependent upon your credit score. Your score is 650. How much interest is accrued in the first month? Score <500 501-650 651-750 751-800 Rate (APR) 15.75% 12.75% 9.25% 5.75%
$38.38
Your gross pay is $1,935.00. Your involuntary deductions are FICA (7.65%), federal withholding (13%), and state withholding (9%). How much are you allowed for housing and fixed expenses?
$490.06
The "Limited Plan" offers a 15% discount for power usage between 7pm - 9am if most of your usage happens during that time. If not, then you lose your discount and you pay a 20% premium on the usage outside of that time. The cost per kilowatt hour is $0.05432. How much would you have paid in March if you used 450 KWH 7pm - 9am and 465 KWH 9am - 7pm?
$54.75
You earn $10.00/hour. You invest $4,000.00 at an interest rate of 5% APR for a year. How much interest did that savings earn in a year in terms of hours of work?
20 hours
If you are just building your payment history, how many points from a perfect score will you possibly miss?
280 points
you work 40 hours for 50 weeks and are given the option to be paid hourly or to go on salary in which situation will you earn the most
30,000/year with a 10% bonus
Your payment history is ____ of the credit score.
35%
You have a score of 700 but your credit score gets affected by having too much debt and you lose 5% of your credit score. What is your new score?
665 points
When you estimate expenses for a month, you should _____.
Add expenses for rent/mortage, utilities, food, and gas.
When calculating interest accrued, you use the _____.
APR
Most credit card incentive programs give _____.
cash back
FICO stands for ______.
Fair-Isaac Corporation Score
One reason people do not use cash as much to pay for items is because _____
If it is stolen, it is not traceable.
_____ by credit card companies are meant to get you to use the credit card.
Incentives
You have 3 credit cards: $990.34 (credit limit: $3,500.00), $2,365.78 (credit limit: $4,600.00), and $5,897.65 (credit limit: $8,000.00). You pay off the lowest balance and close the card. What happened to your debt ratio?
It increased.
Which of the following is an advantage of using a debit card compared to using a check or credit card?
It is harder for a thief to use your debit card.
Suppose you have a bi-weekly mortgage payment of $657. If there are typically 4 weeks in a month, what do you need to do to estimate your monthly mortgage payment?
Multiply it by 2, then round
Interest is calculated by _____.
Multiplying the principal by the interest rate and the time
Which of the following statements is best supported by this lesson?
Rewarding yourself with a small treat every now and then is probably okay.
Principal is _____.
The original amount invested
When you owe money, it is _____.
a debt
A rule of thumb refers to _____.
a general rule most people follow
A fee charged for not paying a bill is commonly called _____.
a late payment/missed fee
A person or company that allows others to borrow money is called _____.
a lender
Interest charged when you miss a payment is called _____.
accrued interest
Debt ratio is calculated by _____.
adding all that you owe and dividing by your total available credit limit
In terms of a loan, contractually means you _____.
agree to the terms of the loan and are obligated to pay according to those terms
A check card is also known as a _____.
debit card
Credit cards are different from debit cards because ____.
debit cards take money directly from your checking account
When you owe money, you are a _____.
debtor
You pay off the $800.00 credit limit card from the previous problem. What happens to your debt ratio? (Remember, in the previous problem you have four credit cards. Each has a balance of $450.00, but their credit limits are $800.00, $1,200.00, $1,300.00, and $1,500.00.)
decreases by 4%
voluntary deductions include
health insurance premiums
As you pay your mortgage, your equity _____.
increases
Closing a credit card usually ____ your debt ratio.
increases
When investing in a savings plan, it is better to _____.
invest all the money you can in the beginning at the highest compounding interest rate possible, and then add money periodically
FICA is a
involuntary deduction based on a percentage of gross pay
The type of credit card you want to pay in full, on time, every time is ____
low credit limit, high interest
The better your credit profile is, the _____.
lower your interest rate and the more you may borrow
Brand named items are _____.
luxuries
Items that are wants are considered to be _____
luxuries
Credit profile shows _____.
many parts such as credit history, debts, and payment history
The current value of a house is its _____.
market value
You should always pay more than the _____.
minimum due
Charge cards _____.
must have their balances paid in full each month
Realized income is also known as _____.
net income
You have four credit cards. Each has a balance of $450.00, but their credit limits are $800.00, $1,200.00, $1,300.00, and $1,500.00. Paying off and closing which card would decrease your debt ratio?
the $800.00 limit card
Most credit cards are _____ debt.
unsecured
To calculate a rewards program incentive, you _____.
use the percentage of a number
Interest rates on loans are determined by ____.
your credit profile
