FIN112 HW
Dean initially invested $3,150 in a company and has held this investment for four years. Dean sold the investment after four years for $5,575. Assuming he is in the 25% tax bracket, what is his capital gains tax?
$363.75
According to the video, what is the most common reason that the adjusted bank balance and your checkbook balance don't agree?
Either you or the bank made a mistake.
Jacob contributed $2,200 to charity within this past year, which qualifies for a tax deduction. Tucker saved $2,200 with a tax credit within this past year. Assume both Jacob and Tucker are in a 20% tax bracket. What is the difference between Tucker's tax credit and Jacob's tax deduction?
$1,760
Mason is applying for a 30-year mortgage with a 5% interest rate. Mason has an annual income of $50,000 and has no additional debt. His estimated monthly property taxes and homeowners insurance is equal to $430. What is Mason's affordable mortgage amount?
$175,977.65
Grace saved $3,000 by using a tax credit. Assume Grace is in a 25% tax bracket. What is the amount of her tax credit?
$3,000
Landon is looking to obtain a home equity loan. A lender will loan 65% of the home's current market value, which is $200,000. Landon currently owes $90,000 on his original home mortgage. What is his home equity credit limit available?
$40,000
How would an increase in the interest rate effect the present value of an annuity problem (all other variables remain the same)?
Decrease the present value.
According to the video, a (n) ____________ is the amount by which actual spending exceeds planned spending.
Deficit
After putting your financial plan to work, you should periodically review and revise your plan, especially if you have all of the following, except:
Develop your goals.
According to the end of the video, the decision to buy or lease an automobile is a __________________ decision.
Difficult
Mikey initially invested $2,400 in a company and has held this investment for 3 years. He sold the investment after 3 years for $4,950. Assuming he is in the 39.6% tax bracket, what is his tax savings with capital gains rates?
$499.80
Max and Lucille are currently preparing a personal balance sheet. Their total assets are equal to $159,788 and total liabilities are equal to $64,767. What is Max and Lucille's net worth?
$95,021
Rachel currently has a net worth of $132,250 and liabilities equal to $38,650. What is her debt ratio?
0.29
Heather is currently in a 15% tax bracket and has a 3.4% savings rate of return. What is her after-tax savings rate of return?
2.89%
Retirees also have varying amounts of social security that is taxed based upon the amount of their income. In some cases, the difference can vary between _____ and _____ being taxed.
50%; 85%
Meredith saves $575 a month and her gross income is $6,500 each month. Meredith's liquid assets are equal to $4,000 and her current liabilities are equal to $1,200. Her net worth is $65,000. What is Meredith's savings ratio?
8.85%
According to the video, what is a way to practice wise purchasing strategies?
According to the video, what is a way to practice wise purchasing strategies?
According to the video, which of the following is not an example of tax credits?
According to the video, which of the following is not an example of tax credits?
According to the end of the video, what is the goal of budgeting?
All of the above are mentioned as goals of budgeting at the end of the video.
According to the video, which of the following is mentioned as a tip or trick regarding high-cost financial services?
All of the above.
________________________ is a check that you have written but has not been presented to the bank for payment.
An outstanding check
Which of the following is an example of closed-end credit mentioned in the video?
Automobile Loans
According to the video, all of the following are other options to consider when you finance your home, except:
Buy-Backs
____________________________ is more common and has a _______________ interest rate charged by most lenders.
Closed-end credit; lower
Which of the following is mentioned in the video as the top identity theft issue?
Government Documents
A ______________________ should be used to keep records that you need on a regular basis and documents with limited value.
Home file
According to the video, _________________ is unplanned buying with little investigation of alternative stores, brands, or prices, whereas, _________________ is the process of considering alternative stores, brands, and prices.
Impulse buying, comparison shopping
If the providers in the financial system dramatically change their behavior by significantly reducing their savings, this has the potential to:
Lead to higher interest rates.
Goals that are SMART, include all of the following except:
Meaningful
The primary goal of the Users in the Financial system is to:
Obtain funds for the least cost.
Investments held for less than one year will be taxed at ___________________________, whereas investments that have been held for over one year are taxed at ____________________________.
Ordinary income rates; capital gains rates
The variables in a present value of a lump sum problem include all of the following, except:
Payments
According to the video, which is one of the main advantages of pre-paid cards versus cash?
Pre-paid cards are more secure, easier to track the expenses, and loyalty points are available with certain stores.
According to the video, what can be thrown in a wastebasket?
Receipts for small non-tax-deductible purchases and Receipts for expired warranties
According to the video, what can be thrown in a wastebasket?
Receipts for small non-tax-deductible purchases and Receipts for expired warranties.
The variables in a future value of an annuity problem include all of the following, except:
Risk tolerance
According to the video, what is the second step in preparing a personal balance sheet?
To list your liabilities.
All of the following are reasons mentioned in the video of why homeowners obtain home equity loans, except:
To pay for family vacations.
According to the video, the quickest way to improve your debt-to-equity ratio is:
To pay off some of your debts.
___________________ individuals are those who have bank accounts, but still use high-cost financial service companies.
Underbanked
According to the video, all of the following are advantages of pre-paid cards, except:
Unlimited purchasing
Chris is trying to decide which laundry detergent to purchase for his wife, Haley. Exhibit 1 is priced at $10.98 for 100 ounces. Exhibit 2 is priced at $13.97 for 150 ounces. What is the unit price of Exhibit 2?
$0.09 per ounce
Aubrie is going to make a 22% down payment on her house. If her affordable mortgage amount is $212,476.35, what is Aubrie's affordable home purchase price?
$272,405.58
According to the video, which of the following is not mentioned as a financing opportunity for the unbanked?
Corporate Bonds
All of the following are true about conventional mortgages discussed in the video, except:
Each monthly payment is fixed for a set period of time and then they may adjust if the market interest rate has risen.
According to the video, the decision to rent or buy a home is an important decision that can affect not only your ________________, but also your _________________.
Financial decisions; quality of life
Which of the following is involved in step two of the flowchart in the video for wise online buying activities?
Individuals should compare both brick-and-mortar stores and online merchants.
According to the video, all of the following is a disadvantage of buying a home, except:
It can be hard to maintain ownership of the home.
Preston is currently self-employed and owns Financial Planning by Preston. He currently can contribute 20% of his business income into his retirement account. Which of the following retirement plans does he most likely have?
Keogh Plan
According to the video, what is (are) the main goal(s) of tax planning relating to retirement and education planning?
To provide essential resources for specific events in the future and To lower income during high tax bracket times and shift some income to low tax bracket times.
Financial intermediaries' main goal is to:
Charge an amount that will pay them to operate and charge an adequate interest rate.
All of the following are things to remember if you decide to purchase a product or service online based on the video, except:
Individuals should search Google for free products and services.
Bailey is currently learning about the proper places to keep personal financial records in one of her classes in college. Where should Bailey tell her parents to keep her birth certificate, their marriage license, and mortgage documents for their house?
Safe Deposit Box or Fireproof Safe
All of the following are involved in the first step of the consumer complaint process discussed in the video, except:
The consumer should post concerns on the company's social media sites.
According to the video, all of the following are some additional options to avoid identity theft, except:
Use as few online sources as possible.
Which of the following is an advantage of buying a car compared to leasing that is mentioned in the video?
There are not any additional costs incurred for extra mileage.
Marsha invests $1,350 and earns a $105 return at the end of one year. What is her annual percentage yield (APY)?
7.78%
Derek has liquid assets of $4,450 and he saves $615 a month. His current liabilities are equal to $1,750 and monthly credit payments of $425. Derek's gross income is $5,900 each month and a take-home pay of $4,775. What is Derek's debt-payments ratio?
8.90%
The title search fee is paid by the _________ and is designed to ensure that the ___________ can legally purchase the property.
Buyer; buyer
When compared to __________________, ___________________ is often more difficult to obtain because the lender must rely upon your word that you will pay back the loan.
Closed-end credit; open-end credit
What are some of the legal actions that consumers can take that are discussed in the video?
Consumers can file or become a participant in a class-action lawsuit, Consumers can bring their claims to a small claims court, and Consumers can consult with a lawyer
According to the video, what should you do if your identity is stolen?
Contact the creditors for any accounts that have been tampered with or opened fraudulently and Contact the fraud department of each of the three major credit bureaus.
According to the video, all of the following are seller estimated costs, except:
Appraisal fee
According to the video, which of the following is an advantage of renting a home? (Choose the most inclusive answer)
Individuals can rent a home with a smaller financial commitment than if you were to buy a home, It is easy to move or change homes if you don't like the first home, and There is less maintenance associated with renting a home.
According to the diagram in the video, which of the following is involved in step four?
Individuals should keep receipts, warranty information, and other documents for the product or service you purchased.
According to the video, what is step 3 in the bank reconciliation process for individuals?
Subtract any bank fees, ATM withdrawals, automatic payments, and other charges made by the bank that have not been recorded in your checkbook.
________________________ is the use of illegal actions to reduce your taxes, where as ________________________ is the use of legitimate methods to reduce one's taxes.
Tax evasion; tax avoidance
The variable that you are solving for in a future value of an annuity problem is:
The Future value
The variable that you are solving for in a present value of an annuity problem is:
The Present Value
According to the chart in the video, what is reported at the bottom of the statement?
The amount owed at closing by both the buyer and seller