financial mathematics - unit 5: creating a budget

the martinez family wants to use budget billing for its natural gas bill. family members made a chart of last year's gas bills. how much should the martinez family budget monthly for their natural gas use?

$79

flexy was badly injured at a party. he has a health insurance contract in place. his treatment cost him $1200. his insurance confirmed his claim and paid him $900. what accounts for the difference between his bill and the amount he was paid?

deductible

lesson 21

types of expenses

ophira's insurance company has notified her that her premiums will increase due to a poor insurance score and a recent claim she filed. the recent claim has increased her premiums by 41%, and her poor insurance score will cost her an additional $25 per month. ophira currently pays $815 per year for insurance. how much will she pay next year?

$1449.15

sean wants to buy a personal insurance policy that will pay monthly benefits to his son after sean dies. he pays $500 monthly over the next 10 years to the insurer. what type of insurance should he buy?

annuity

the average consumer spends 7% of annual income on utilities. the robinsons' annual income is $85,000. how much should their monthly budget be for utilities?

$495.83

terry makes $2400 per month in gross income. his net earnings are 80% of his gross. his utility bills total $150. what percentage of terry's net earnings is he spending on utilities?

7.8%

lesson 22

health and life insurance

mark is considering purchasing a $300,000 life insurance policy. mark is a 26-year-old single male with perfect health and no children. which life insurance policy is best for mark?

policy a

joshua is considering purchasing a $500,000 life insurance policy. joshua is a 45-year-old married father of two children who has a serious health issue. which policy is best for joshua?

policy d

raul is shopping for insurance for his new car. he is a 25-year-old married male, who has several speeding tickets. he has never made an insurance claim. which policy is the best option if he wants to get maximum coverage on his car?

policy d

angie just moved into an apartment. she thinks about getting insurance to cover her in the event that she loses any of her possessions. renters insurance will cost her $14 per month. what is the weekly cost for renters insurance?

$3.23

lesson 24

utilities

carlos creates a basic budget using the equation money left over = a − b − c, where income = a, needs = b, and wants = c. his monthly income is $3210, his mortgage payment is $1350, and he spends an additional $950 each month on groceries, utilities, and insurance. finally, he buys four concert tickets for $300. which amount represents his needs?

$2300

sam's total expenses last month were $1840. what was his total variable cost for last month?

$1500

rachel's income for july is $3300. she spent $1000 for rent, $150 on student loans, $100 for a new tablet, and $450 on groceries. how much of her monthly income is left?

$1600

electricity costs vary from state to state. in the state with the lowest cost, the charge for electricity is 9.81 cents per kilowatt. in the state with the highest cost, it is 33.43 cents per kilowatt. In their present home in the state with the lowest rates, malik and his family use 911 kilowatts per month. they are moving to the state with the highest rates. if they continue to use the same amount of electricity, by how much will their monthly electricity budget increase?

$215.18

balraj lives in a very cold remote area far from the city where he works. commuting to his office is always difficult. he has realized that he saves more when he controls some of his expenses. he wants to cut down on his wants. which items are wants? select all that apply.

jewelry entertainment culb membership subscription

tila hit another vehicle. she caused heavy damage to the rear end of the car. the car owner claims her neck and shoulders are hurting. tila's monthly premium is $390. she has a $500 deductible. her premium will increase by 3% after she makes a claim. the table shows average repair and healthcare costs. the insurance company pays $500 on the claim. how many months will it take for the increase in premium to pay for the claim?

43 months (390 ⋅ 0.03 = 11.70. her insurance premium will increase $11.70 every month after she makes the claim. the insurance company paid $500 on the claim. divide $500 by $11.70 to find the number of months it takes to pay the $500 claim: 500/11.70 = 42.7. because tila can't pay part of a month, round up to the nearest month to make sure the entire amount is paid for. 42.7 months rounds to 43 months.

the table represents the cost of automobile insurance. maddie hit the light pole in the school parking lot. luckily the light pole was not damaged. what options should she choose to make sure this is covered by insurance?

monthly premium cost and comprehensive cost (maddie would need comprehensive coverage because she hit a light pole and not another car)

the briggs family is trying to reduce the amount of money it spends on utilities. variable expenses are harder to manage. which expenses are variable?

water bill electricity bill natural gas bill

the expression 12x + 4y + 365z represents irma's yearly expenses. she pays for rent every month, a student loan every three months, and bus service every day. which variable represents her student loan?

y

zoey's family pays $12 a month for trash pickup. of this amount, $3 is for recycling. what percentage of the monthly bill is for recycling?

25%

rachel earns $28,000 income a year after taxes. using the 50/30/20 budget rule, what is the maximum amount of her income she should spend on her wants?

$8400

jared is considering purchasing a health insurance policy. jared is a 30-year-old married man with no children. which is the best policy for jared?

policy a

lesson 25

additional expenses

lesson 23

auto and home/renter insurance

andrew wants to create a budget to improve his spending habits. his needs are his rent, groceries, utilities, car payments, and insurance payments. let g be the cost of groceries and cc be the cost of his car payments. he earns $2000 per month after taxes and estimates his rent is 2.5 times as much as his grocery costs. the amount he spends on utilities is $75 less than his grocery costs. he spends 1.5 times as much on his insurance payments as he does on his car payments. assuming that andrew uses the 50/30/20 budget rule, which function models the cost of his car payments?

c = $1075 - 4.5g//2.5

the following items represent carla's needs and wants for this month. which items are needs? select all that apply.

groceries for $180 cell phone bill for $55 new tire for her car for $120

leroy pays $318 a month for his car insurance. he had an accident with another driver, and his insurance company paid $4300 to settle the claim. at the end of the year, did the insurance company make a profit from leroy?

no, because the amount of the claim was more than a year's worth of payments.

suppose naomi is a 27-year-old single woman. she wants to change her budget to be able to enjoy more of her wants. what should naomi do to change her budget without making her budget unrealistic? the following table shows her current budget.

naomi should decrease the amount of money she spends on savings and use that money to enjoy more of her wants.

nth is a 23-year-old single male. he is in perfect health, and he has children. which health insurance policy is best for him?

policy 2

dan is 60 years old. he is married and has children. he is starting to experience problems with his eyes and having other age-related health issues. he wants a health insurance policy. which policy is best for him?

policy d, because it covers dental and vision

when making a budget, a recommended goal is to spend 10% on utilities. in reality, household spending depends on economic levels. households with incomes from $15,000 to $20,000 spend over 11% on utilities. households with incomes from $50,000 to $70,000 spend 8.2% on utilities, while households with incomes above $150,000 spend only 4.8% on utilities. the mckinneys' annual income is $65,000. how much should they budget annually for utilities?

$5330

debra used 250 kwh of electricity at a rate of $0.25 per kwh and was charged a $25 maintenance fee for the month. how much is debra's electricity bill for the month?

$87.50

jason earns $2985 per month and spends his income according to the 50/30/20 rule. which value best approximates the amount he should spend on wants each month?

$900

papa is a wealthy 62-year-old man who is married with no children. he wants to buy an insurance policy that will pay him dividends and cover him for his entire life. which policy should he buy?

whole life insurance

debby pays rent twice a year, buys groceries once every quarter, and buys a transit pass every month. how should her yearly expenses be represented?

2x + 4y + 12z