Financial Math
Mr. Chavez has assets of $250,000 and liabilities of $18,000. He decides to finance the entire amount of the purchase of a car valued at $26,000. Which of the following is true?
c) Mr. Chavez increased both his assets and net worth.
Which of the following could be true if one decreases their long term liability and increases their liquid assets?
c) Paid down mortgage and received a cash prize.
Over the period of a year, Sam's net worth increased. Which of the following could be true?
c) Sam's assets increased by more than his liabilities.
What does a negative net worth indicate?
c) Your liabilities exceed your assets.
The Roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000. They also have liabilities totaling $108,000. If their total liabilities increase by $7,000 over the next year, by how much would the Roth family need to increase their assets in order to have a net worth of $100,000?
c)$21,000
Which of the following modifications to the list of assets and liabilities below would result in a negative net worth? House valued at $90,000. Mortgage owed $78,000. Car valued at $11,000. Car loan of $5,000. Student loan of $13,700. Stocks valued at $2,500. Savings of $3,000.
c)Borrowing $10,000 more in student loans.
Which of the following is not a typical cost associated with renting? a. last months rent b. pet deposit c. property tax d. security deposit
C
Mr. and Mrs. Yeager want to buy a home valued at $320,000. If they have 15% of this amount saved for a down payment, how much have they saved? (Queue AOT theme song) a. $480 b. $4,080 c. $4,800 d. $48,000
D
The rare coin collection your grandmother gave you is part of your liabilities.
False
Billy's employer pays for 65% of his annual health insurance premium. Billy has the rest deducted in equal amounts from his paycheck. If Billy has $105.73 withheld from his paychecks twice each month, how much does his employer contribute towards his health insurance on an annual basis?
$4,712.54
Mr. and Mrs. Donahue want to buy a home valued at $365,000. If they have 21.5% of this amount saved for a down payment, how much will their home loan be? a. $78,475 b. $286,525 c. $341,275 d. $357,153
B
Which of the following is something that should not be a consideration when choosing a health care plan?
the coverage the insured individual and family already receive in auto insurance
Latisha found an apartment that she wants to rent. The rent is $675 per month and there is a security deposit of $325. To move in, Latisha must have first months rent, last months rent and the security deposit. How much does Latisha need to move in? a. $1,000 b. $1,325 c. $1,675 d. $2,000
C
Bill has $270.61 in his account before making any transactions. Over the course of a week, Bill makes the following transactions: Transaction Debit ($) Credit ($) Paycheck --- 535.67 Electric bill 112.53 --- Groceries 90.79 --- Savings bond --- 50.00 Car payment 225.65 --- At the end of the week, how much money is in Bill's account?
$427.31
In addition to general medical services, Holly would like to add dental and vision options to her health care plan. The monthly premium for her medical insurance is $345 of which her employer pays 65%. Her employer also offers to pay 50% of the monthly dental premium of $38 and 75% of the $23 monthly premium for the vision plan that is offered. If Holly opts for both the dental and vision options in addition to her regular health insurance, what will her total monthly premium be?
$145.50
Irving spent the day shopping and made the following purchases: Item Cost ($) Novel 8.75 Shirt 21.66 Lunch 9.13 Potted plant 16.89
$151.49
Bob's bank charges him a $3.15 service fee every time he uses an out-of-network ATM. If Bob uses an out-of-network ATM an average of three times every two weeks, how much will he pay in service fees over the course of a year?
$245.70
Ted is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Ted's spending pattern: Day Debit ($) Credit ($) Monday 112 --- Tuesday 141 18 Wednesday 56 --- Thursday 28 70 Friday 22 42 Saturday 16 88 If the bank charges Ted an overdraft fee of $25 every time he overdraws his account, and Ted overdrew his account on Wednesday but not on Friday, which of the following is a possible amount of money that Ted could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees.
$280
Evelyn spent the day shopping and made the following purchases: Item Cost ($) Camera 66.31 Hat 13.44 Parking 8.00 Planner 9.78 When Evelyn was done, she checked her account balance and found she had a total of $208.16. How much money was in Evelyn's account to begin with?
$305.69
The health care Jimmy's employer offers is a fee-for-service plan in which Jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. Jimmy and his family have several health related issues that demand $685.00 each month. If one of Jimmy's children were to become seriously injured at the end of the year, how much would the related health costs need to be in order for the insurance company to assume responsibility?
$4,280.00
Dominic is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Dominic's spending pattern: Day Debit ($) Credit ($) Monday 158 --- Tuesday 69 44 Wednesday 175 --- Thursday 131 38 Friday --- 53 Saturday 22 14 If the bank charges Dominic an overdraft fee of $25 every time he overdraws his account, and Dominic overdrew his account on Thursday but not on Saturday, which of the following is a possible amount of money that Dominic could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees.
$435
Liam has purchased a fee-for-service health insurance plan from Leroux Health Insurance. Plan A includes a $248.00 monthly premium and an annual deductible of $5,500.00 (not including co-pays). Liam is a fairly healthy young man. He visits his primary care physician three times a year on scheduled visits. He sees a chiropractic specialist every week to help with lower back pain. He has no current prescriptions that need refilling regularly. Assuming Liam maintains his regular visits with his primary care physician and his chiropractor, and avoids any trips to the emergency room or urgent care, how much will Liam pay in health care related fees this year?
$6,216.00
Bob's employer covers 23% of his family's annual health insurance premium. The balance of the premium is deducted in equal amounts from Bob's paycheck 26 times over the calendar year. If $185.30 is withheld from each of Bob's paychecks, what is his family's annual health insurance premium?
$6,256.88
Javier's employer pays for 43% of his annual health insurance premium. Javier pays the remaining balance by having it deducted from his paychecks in equal amounts twice a month throughout the year. If $157.38 is deducted from each of Javier's paychecks, what is his total annual premium?
$6,626.53
Mr. Henderson's annual premium of $4,668 is covered entirely by his employer along with 25% of the $9,264 premium for his wife and kids. How much of the Henderson family's annual premium is being paid for by Mr. Henderson's employer?
$6,984
Andrew is insured by Leroux Health Insurance under Plan A. The plan includes a $248.00 monthly premium with a $5,500.00 annual deductible (not including co-pays). Andrew is severely asthmatic. He visits his primary care physician twice a month and his asthma specialist once a month. He has two separate generic inhalers that need to be refilled on a weekly basis. To make matters worse, Andrew has recently been diagnosed with appendicitis and is scheduled to have his appendix removed in the morning. The procedure will cost about $1,500. Considering his frequent doctor visits, many prescription refills, and his appendix removal in addition to his monthly premium, how much will Andrew pay in health care related fees this year?
$7,716.00
Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following transactions: Transaction Debit ($) Credit ($) Birthday check --- 75.00 Night out 66.14 --- Garage sale proceeds --- 121.58 Charitable donation 42.25 --- Doctor's appointment 115.30 --- At the end of the week, how much money is in Danielle's account?
$99.91
Luis wants to buy a home priced at $315,000. He plans to finance this amount less the down payment required. His mortgage payment would then be $2100. Luis has an annual income of $91,500 and $65,000 in savings. Luis has a car payment of $370, a student loan payment of $165 and a credit card payment of $45. Use a 20% down payment and the 28/36 ratio to determine if Luis is eligible for a loan. What would you advise him to do if he is not eligible? a. Luis is eligible for a home loan; he meets all of the requirements. b. Luis is not eligible for a home loan; he should continue to save for a down payment. c. Luis is not eligible for a loan; he should look for a cheaper house. d. Luis is not eligible for a loan; he should reduce his recurring debt.
A
Pat and his friend rent an apartment together. Their total cost to move in included first months rent, last months rent and a security deposit of $600. If Pat paid a total of $1,050 to move in, how much is his share of the rent each month? a. $375 b. $450 c. $525 d. $750
A
Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with a monthly income of $3,200. a. $256 b. $512 c. $640 d. $896
A
Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with an annual income of $86,250. a. $575.00 b. $2,012.50 c. $2,415.00 d. $2,587.50
A
Which of the following is an advantage of renting? a. ease of mobility b. economic gain c. financial risk d. tax savings
A
Which of the following statements best describes the difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)?
An HMO requires the insured individual to go to a provider within their organization while a PPO allows the insured individual the option to receive care from a non-preferred provider at a higher cost.
Asset
An asset is an item that is owned and has value.
Sally must have a total of $2,250 to move in to her new apartment which includes first months rent, last months rent, a pet deposit and a security deposit. If the pet deposit is $150 and the security deposit is $750, how much is her rent each month? a. $650 b. $675 c. $750 d. $1,050
B
Using the standard 28/36 guidelines, if the maximum monthly mortgage payment allowed for someone applying for a home loan is $1,085, what is their annual income? a. $36,167 b. $46,500 c. $65,100 d. $162,750
B
Using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual salary of $60,750? a. $1,215.00 b. $1,417.50 c. $1,701.00 d. $1,822.50
B
You work for a lending institution and are tasked with whether or not to approve a home loan. All applicants are required to have a 20% down payment, and the standard 28/36 ratio is used The loan application is for $230,000. You see that the applicant has an annual salary of $83,000 and a savings account balance of $50,000. The applicant also has a car payment of $315, a student loan of $140 and a boat loan of $96. How likely are you to approve the loan? a. Very likely; recurring debt is considerably less than what is allowed. b. Somewhat likely; recurring debt is very close to what is allowed. c. Not likely; recurring debt is higher than what is allowed. d. There is not enough information given to determine the answer.
B
In what way is a debit card similar to a check?
Both pull money directly from a checking or savings account.
A couple is required by their lender to have a down payment of 20% of the purchase price of the home they want to buy. If the couple has saved $35,000, what is the most expensive home the couple can afford to buy? a. $63,000 b. $140,000 c. $175,000 d. $210,000
C
Mandy has an annual salary of $37,580. Each month she has a car payment of $265 and a student loan of $120. If she applies for a home loan, how likely is it Mandy will be approved based on her debt-to-income ratio? a. Very likely; recurring debt is less than what is allowed. b. Somewhat likely; recurring debt is equal to what is allowed. c. Not likely; recurring debt is higher than what is allowed. d. There is not enough information given to determine the answer.
C
Marquet is relocating to an area where she will be attending college. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in cost of $1,350 and monthly payment of $795. Buy: Move-in cost of $8,235 and monthly payments of $750. Marquet plans to stay in the area for the 5 years it will take her to get a graduate degree, so she decides to buy. Choose the best evaluation of Marquet's decision. a. Since the costs would be the same over the 5 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 5 year period as long as she doesn't have major repairs to make. c. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 5 year period. d. There is not enough information given to determine which option is best.
C
Miguel wants to buy a condominium. He has the choice of buying it now or renting it with the option to buy at the end of 3 years. If he buys it now, it will cost him $6,000 to close and his mortgage payment will be $726 per month. If he rents, he must pay a move-in cost of one months rent and a security deposit of $2,000. Miguel decides to rent because it is the cheapest option over the first 3 years. To the nearest dollar, what is the maximum amount of monthly rent payment he could pay? a. $670 b. $782 c. $814 d. $837
C
Mika wants to buy a condominium. He has the choice of buying it now or renting it with the option to buy at the end of 3 years. If he buys now, he could put $0 down, but he must pay closing costs of $7,100. His monthly mortgage payment will be $675. Mika decides to rent instead of buy because it is the cheapest option over the first 3 years. His move-in costs are one months rent and a $750 security deposit.To the nearest dollar, what is the maximum amount of monthly rent payment he could pay? a. $636 b. $654 c. $828 d. $851
C
Three friends decide to rent an apartment and split the cost evenly. They each paid $640 towards the total move in cost of first and last months rent and a security deposit. If rent is $650 per month, how much was the security deposit? a. $10 b. $207 c. $620 d. $1,270
C
Two friends decide to rent an apartment and split the cost evenly. They each paid $575 towards the total move in cost of first and last months rent and a security deposit. If the apartment cost $325 per month to rent, how much was the security deposit? a. $125 b. $250 c. $500 d. $825
C
Which of the following could result in higher living costs for the homeowner that the renter doesn't have? a. decreased property value b. down payment c. maintenance d. monthly payment
C
Why is a larger down payment beneficial to a home investor? a. A larger down payment would only be beneficial to an investor if they intended on renting out the house. b. A larger down payment would enable an investor to get a loan with a higher interest rate and lower monthly payments. c. A larger down payment would enable an investor to get a loan with a lower interest rate and lower monthly payments. d. A larger down payment is essentially a larger bribe to the lending institution and gets the investor in their good favor.
C
You work for a lender that requires a 15% down payment and uses the standard debt-to-income ratio to determine a person?s eligibility for a home loan. Of the following, choose the person that you would rate the highest on their eligibility for a home loan. Person A Person B Person C Person D home value $95,000 $107,000 $120,000 $128,000 income $46,000 $53,000 $58,000 $60,000 savings $20,000 $13,910 $18,000 $19,200 recurring debt $310 $198 $265 $400 a. Person A b. Person B c. Person C d. Person D
C
Theresa has $708 in her account and wishes to throw a party. She plans to include the following: Purchase Cost ($) Decorations 76.92 Catering 150.66 Musicians 242.15 Refreshments 123.36 Venue 260.47 When Theresa makes the calculations, she finds that she cannot afford everything that she would like to have. What is the cheapest aspect of the party that she can eliminate to keep from overdrawing her account?
Catering
In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below. If Kevin is currently insured under Leroux for his medical insurance under Plan A, how will the proposed changes affect his health care costs?
Costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured.
How much annual income would you need to have if, using the 28/36 ratio, your maximum allowable recurring debt is $500? a. $21,430 b. $30,000 c. $62,500 d. $75,000
D
Keyon and two of his friends are going to rent a 3 bedroom apartment for $840 a month. The security deposit is $500 and the pet deposit is $265. In addition to the deposits, Keyon and his friends must pay first and last months rent. If they split the cost evenly, how much will each pay to move in? a. $535 b. $613 c. $727 d. $815
D
Krista and Nick put a down payment of 20% on the purchase of their house, and then financed $200,000. What was the purchase price of the house? a. $160,000 b. $220,000 c. $240,000 d. $250,000
D
Tomaso and three of his friends are splitting the cost to rent a house for $975 a month. The security deposit is $1,500 and there is a cleaning deposit of $325. They must pay first and last months rent upon moving in. Tomaso has a cat, so he will pay an additional $150 pet deposit that his friends won't. Approximately how much will Tomaso pay to move in? Round your answer to the nearest dollar. a. $850 b. $944 c. $981 d. $1,094
D
Which of the following is a typical cost associated with renting? a. closing costs b. down payment c. property tax d. security deposit
D
Which of the following is not an advantage of renting? a. ease of mobility b. fewer responsibilities c. lower initial costs d. restricted lifestyle
D
Which of the following ratios is used to determine ones debt-to-income ratio? a. 20/28 b. 20/36 c. 28/30 d. 28/36
D
Why is it important to a lending institution that a person present a 2-year job history when applying for a home loan? a. Most lending institutions have quotas for giving loans to people with certain careers. b. A job history helps the lender to get to know the people they are lending money to instead of lending to a complete stranger. c. Lending institutions have a high employee turnover rate and are always looking for new employees. d. It is important to present job history when applying for a loan because a bank or lender needs assurance of payment.
D
Richard has $652 in his account and is planning a road trip. He looks at how expensive hotels and sightseeing costs are in certain cities, planning accordingly: City Cost ($) Detroit 196.87 Pittsburgh 180.32 St. Paul 102.87 Cincinnati 155.81 Richmond 211.86 When Richard makes the calculations, he finds he does not have enough money to visit each city. What is the cheapest city that Richard can drop to avoid overdrawing his account?
Detroit
Choose the circumstances in which a debit card can be used. I. Point-of-sales transactions II. ATM withdrawals
I and II
Isabelle has $84.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 22.35 --- Tuesday 47.60 10.29 Wednesday 15.44 --- Thursday 11.25 --- Friday 9.78 22.69 Saturday 30.54 18.86 On which day or days does Isabelle get charged an overdraft fee? I. Thursday II. Friday III. Saturday
I and III
Anna has $274.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 194.62 35.45 Tuesday --- 11.20 Wednesday 145.86 24.75 Thursday 53.35 33.80 Friday 31.60 45.77 Saturday 12.90 61.63 Anna gets an overdraft fee if her balance at the end of the day is negative. On which day or days does Anna get charged an overdraft fee? I. Wednesday II. Thursday III. Friday
II and III
Patrick and Susie just welcomed a set of twins to their family and have to decide how to purchase health insurance for the babies. Patrick's employer pays for 100% of his monthly health insurance premium of $378, but will not pay for any of the $280 for each additional beneficiary. Susie's employer, who pays 63% of her $403 monthly premium, offers to pay 32% of the $310 monthly premium for each additional beneficiary. Which would be the most economical way to purchase health insurance for the family?
Insure Patrick with his employer and Susie and the twins with her employer.
Which of the following is not an advantage of buying a home? Tax savings Potential Economic Gain Pride in Ownership Lower Initial Cost
Lower Initial Cost
Which of the following is not a way health insurance helps to save you money?
Most health care plans set a portion of your premium aside in an escrow account so that you have money available in case of a medical emergency.
Gerald would like to add a dental and vision option to the health insurance plan he purchased through his employer. In addition to the 65% of Gerald's $345 monthly health insurance premium, his employer has offered to pay 50% of a $38 monthly dental premium and 75% of a $23 monthly vision premium. If Gerald adds both the dental and vision options to his insurance plan, how much will he pay each month towards health insurance?
NOT $260.50 because this is what the employer is paying Try: $145.50
Net worth
Net worth is the difference between assets and liabilities.
Sue's bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: Transaction Cost ($) Rent 353.76 Video game 32.79 Bike maintenance 60.26 Jacket 55.62 Rug 80.40 Night out 35.77 Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this?
No, making that purchase will overdraw her account.
Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan?
PPO insurance plans offer a wider choice of primary care doctors and specialists.
Jim and Stephanie just got married and are thinking about changing their health care insurance plans to be more affordable. Currently, both Jim and Stephanie are insured through their own employers. Jim's employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries. Stephanie's employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary. Which would be the most economical way for the couple to purchase health insurance? (the additional 10% is a trick)
Stephanie should add Jim to her health care plan.
A point of sale transaction occurs when an ATM withdrawal is made.
T
As a part-time employee, Rachel does not qualify for any benefits from her current employer. Seeing a need for a health care program, Rachel went shopping for health insurance and is trying to decide between two options with a national health insurance provider. The benefits of each option are outlined in the tables below. The first option is a fee-for-service plan with a $7,500 deductible. Rachel must pay the deductible amount in health-related costs (not including co-pays) before the insurance company will contribute. This plan costs $225.00 per month and requires co-pays for most standard healthcare costs. The second option is an HMO. It is significantly more expensive at $630 per month, but has no annual deductible. The standard co-pays are also less than those in the other option. Rachel is a young lady with very few health care requirements. She anticipates one monthly visit to her primary care physician, and one annual visit to her allergy specialist. She has two generic prescription allergy medicines that need to be filled twice a month. If Rachel is able to stay healthy the entire year and does not accrue any additional health care costs, which of the following statements is true for her situation?
Rachel's health care needs will cost less under Option 1 if she is able to avoid additional health care costs.
Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?
Reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same.
Describe what is meant by the statement "Renting can restrict ones lifestyle."
Renters must live by the landlord's rules or guidelines. For example, a renter may not be allowed to paint, hang things on the wall, put up decorations or have pets.
Rollin and Sandra want to buy a home priced at $265,000. They plan to finance this amount less the down payment required. Rollin and Sandra have a combined annual income of $83,600 and have saved $53,000. They have a recurring debt of $582. Use a 20% down payment and the 28/36 ratio to determine if Rollin and Sandra are eligible for a loan. What would you advise them to do if they are not eligible?
Rollin and Sandra will not be eligible for a loan. Since 20% of $265,000 is $53,000, they have the required down payment.The recurring debt they have exceeds the allowable amount of $557. Rollin and Sandra should work on reducing their recurring debt.
Sandy is trying to reconstruct her spending pattern from July. She knows that she had $277 in her account on July 1, but after that, her receipts and balance statements are all scrambled. Here are Sandy's records: Date Transaction Type Amount ($) 7/26 Purchase 86 7/25 Deposit 76 7/4 Purchase 137 7/6 Deposit 90 7/10 Purchase 131 7/9 Purchase 145 7/15 Deposit 152 7/19 Purchase 137 Assuming that this is a complete, if scrambled, record of Sandy's July spending and that any overdraft fees incurred do not affect the running total, how many times did Sandy overdraw her account in July?
Sandy overdrew her account more than twice.
Elizabeth has $252.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 114.60 150.00 Tuesday 79.68 --- Wednesday 161.39 --- Thursday 57.40 --- Friday 22.85 75.00 Saturday 140.55 --- On what day does Elizabeth first get charged an overdraft fee?
Thursday
Frank has $66.50 in his account on Sunday. Over the next week, he makes the following changes to his balance via deposits and purchases: Day Debit ($) Credit ($) Monday 60.33 80.75 Tuesday 54.45 --- Wednesday 49.20 15.00 Thursday 35.40 --- Friday 16.85 75.00 Saturday 80.56 --- On what day does Frank first get charged an overdraft fee?
Wednesday
Adam's bank account has a balance of $1213.69 before he starts spending money. He makes the following transactions: Transaction Cost ($) Car payment 260.16 Groceries 97.98 Parking ticket 75.00 DVD box set 115.35 Antique lamp 68.53 Suit 331.84 Adam is considering getting his car a new paint job. Doing so will have a total cost of $264.83. Can Adam afford this?
Yes, but doing so will clear out his account.
You have a car that is valued at $12,000. The balance that you owe on the car loan is $7,000. You lose your job and can not afford to make payments on your loan so you sell the car for $9,000 and pay off the loan. Explain how your net worth is affected by your actions.
You have reduced your net worth. Before selling the car, your net worth is $12,000 - $7,000 = $5,000. After selling the car and paying off the loan, it is $2,000.
Liability
a responsibility, an obligation, or a debt
The following table shows the assets and liabilities of the Smith family in 2005 and 2009. Based on the table, which of the following is true?
a) From 2005 to 2009, both assets and liabilities decreased.
The amount of money invested in a retirement fund is an example of which of the following?
a) investment asset
Ben owns a townhome valued at $195,000, but still owes $120,000 on the loan. Ben has $5,000 in savings and a balance of $1,400 on his credit cards. There is a balance of $20,000 owed on Ben's car which is valued at $38,000. What is Ben's net worth?
a)$96,600
Mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down.Which of the following is true?
b) Mary increased both assets and liabilities.
The Svensons find a refrigerator valued at $2,300 on sale for $1,900. They decided to withdraw $500 from savings to use as a down payment on the purchase of the refrigerator and took out a loan to pay the balance. Choose the true statement.
b) The Svensons' assets increased by $1,800.
Which of the following is a liability?
b) credit card balance
When it goes on sale for $1,600, Mikah buys a new plasma television that is valued at $1,800. He takes $300 from his savings account to use as a down payment and finances the rest. Choose the true statement.
b)Mikah's assets increased by $1,500.
In order to reduce their debt, the Johnsons sold some real estate property valued at $165,000 for $143,000. They paid off a loan balance of $100,000 and put the rest in savings. Which of the following is a true statement?
b)The Johnsons increased their liquid assets
Which of the following increases liabilities but not assets?
b. Taking out a loan to go on vacation
Which of the following modifications to the list of assets and liabilities below would result in a positive net worth? Home owned $105,000. Mortgage owed $100,000. Car valued at $26,000. Car loan of $22,000. Investment fund of $4,500. Savings of $1,500. Credit card balance of $15,000.
d) All of the above
The following table shows the assets and liabilities of the Chang family in 2007 and 2008. Based on the table, which of the following is true?
d) From 2007 to 2008, assets increased and liabilities decreased.
Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000? Recreational Vehicle valued at $110,000. Car valued at $27,000. Medical bills totaling $8,700. Loan balance of $80,000. Savings of $5,000. Retirement fund of $50,000. Credit card balance of $2,300.
d) adding $1,000 in credit card debt
The car owned by a person is part of his or her ____.
d) use assets
Which of the following modifications to the list of assets and liabilities below would result in an increase in net worth? Cash of $300. Car valued at $28,000. Car loan of $22,000. Motorcycle valued at $6,000. Savings of $2,000. Credit card balances of $4,000. Student loan of $10,000.
d)all of the above
Which of the following health care programs will wait to pay their share of medical coverage until after treatment is provided?
fee-for-service plan
List 4 factors a lending institution might use when determining your eligibility for a home loan.
income, savings, expenses, debt
Over the period of a year, Julie's net worth decreased. Which of the following could be true? a.Julie's assets and liabilities decreased by the same amount. b.Julie's assets and liabilities increased by the same amount. c.Julie's assets increased by more than her liabilities. d.Julie's assets decreased by more than her liabilities.
not C
Health insurance helps to protect you from financial loss by _____.
paying for some or all of your medical costs while you are insured.
